UK GDP expansion softens


27 October, AtoZForex.com, Lagos – The latest data release from Europe’s second largest economy shows a 0.5 percent change. In the inflation-adjusted value of all goods and services produced by the economy. This shows that the UK economy expanded at a lesser pace in the third quarter (0.5%) compared to the second quarter (0.7%).

The reduced pace of the UK GDP is as a result of a decline in the construction sector and weaker manufacturing output. Marked by a shrunk in construction at 2.2 percent, depicting the highest pace since 2012. Meanwhile, the service sector supported the economy, accelerating at a pace of 0.7 percent. Annual growth, slowed to 2.3%, presenting the weakest reading since Q3 2013.

The report may signal a contagion effect of the emerging-market slowdown, which may be weight on Britain’s expansion.

EURGBP Outlook

GBPUSD Daily, UK GDP EURGBP Daily

The sterling has remained mixed after the report, trading in a choppy range. Nevertheless, we expect a resumption of the down trend on the EURGBP. As soon as the pair is to show specific signs of a reverse, from the bearish plunge.

Think we missed something? Let us know down in the comments section.

Share Your Opinion, Write a Comment