UK GDP falls to 0% month-on-month in July vs. 0.2% expected

• UK GDP stands at 0% month-on-month in July versus forecast of 0.2%.
• GBP/USD struggles with 1.3100 after UK data.

The UK economy showed no growth in July after stagnating in June, the latest data published by the Office for National Statistics (ONS) showed on Wednesday. The market forecast was for a 0.2% increase in the reported period.

Meanwhile, the services index (July) came in at 0.6% 3M/3M from June’s 0.8% print.

Other UK data showed that monthly industrial output and manufacturing output fell by 0.8% and 1.0% respectively in July. Both readings surprised markets lower.

Separately, the UK’s goods trade balance came in at £20.003bn in July, up from £18.1bn expected and £18.894bn previously.

Market reaction to UK data

Sterling is untroubled by UK economic data. At press time, GBP/USD is trading 0.16% higher on the day near 1.3100.