UK GDP Prints Slightly Below Expectations In a Quarter Likely to be Affected by Omicron
Nominal GDP Posts 0.9% in October (MoM)
Nominal GDP figures rose 0.9% in October off a forecast 1%.
UK Real GDP Estimated to Have Grown Just 0.1% in October
Monthly real GDP Grew just 0.1% (MoM) as services sector grew 0.4% as a result of increases in doctor appointments and other human health activities. Services and production output increased while construction contracted 1.8% in October which marks the largest fall since April 2020 during the height of the pandemic.
Figure: UK GDP Index (GDP Figure)
Source: Office for National Statistics
As such, the unflattering data is likely to support the Bank of England’s caution when deciding on whether to raise interest rates for the United Kingdom next week. The immediate response in GBP/USD saw a knee-jerk reaction lower, however, the move remains within the daily range.
Chart prepared by Richard Snow, IG
Major Risk Events for the Week Ahead
Next week presents a blockbuster week for those looking to trade the news. Apart from UK employment and inflation data there is also US retail sales data and Markit manufacturing PMI flash data for December. In addition, between the 15th and 17th of December there will be 5 central bank meetings (last of the year) from major central banks consisting of the US Fed, ECB, BoE, Swiss National Bank and BoJ.
Take a look for yourself by visiting DailyFX’s economic calendar
--- Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @RichardSnowFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.