UK Economic Growth Slows, British Pound Falls
- UK GDP growth eased year/year in the second quarter of 2017, as expected, to 1.7% from 2.0%.
- In response, the British Pound fell back.
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UK economic growth fell year/year in the second quarter of 2017, with GDP expanding by just 1.7%, in line with forecasts, from 2.0% previously. Quarter/quarter growth increased marginally to 0.3% from 0.2%, also in line with expectations.
In response, the British Pound dropped back, with GBP/USD easing but still holding above the psychologically important 1.30 level. The data will likely push an increase in interest rates by the Bank of England further into the future.
Chart: GBPUSD Five-Minute Timeframe (July 26, 2017)
“The economy has experienced a notable slowdown in the first half of this year,” noted, Office for National Statistics Head of National Accounts Darren Morgan. “While services such as retail, and film production and distribution showed some improvement in the second quarter, a weaker performance from construction and manufacturing pulled down overall growth.”
--- Written by Martin Essex, Analyst and Editor
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