UK Preliminary GDP rises 0.6% QoQ in Q2, as expected

• Quarterly GDP for the UK expanded 0.6% in Q2 vs. 0.6% forecast.
• UK GDP arrived at 0% MoM in June vs. 0% estimate.
• GBP/USD keeps gains above 1.2800 on the UK GDP data.

The UK economy expanded 0.6% QoQ in the three months to June, having reported a 0.7% growth in the first quarter of 2024. The market consensus was for +0.6% in the reported period.

The UK GDP rose 0.9% YoY in Q2 vs. 0.9% expected and 0.3% booked in Q1.

The UK GDP came in at 0.% MoM in June, as against a 0.4% increase reported in May, matching the estimated 0% print.

Meanwhile, the Index of services (December) arrived at 0.8% 3M/3M vs. 1.1% prior.

Other data from the UK showed that Industrial Production and Manufacturing Production increased by 0.8% and 1.1%, respectively, on a monthly basis in June. Both indicators outpaced estimates.

Separately, Total Business Investment declined 0.1% on a quarterly basis in the second quarter of 2024.

Following the UK GDP data releases, the country’s Finance Minister Rachel Reeves said, “the new government is under no illusion as to scale of the challenge we have inherited.”

Market reaction to the UK data

 UK GDP and industrial figures failed to move the needle around the Pound Sterling market. At the time of press, GBP/USD is trading 0.17% higher on the day at 1.2845.