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

• Quarterly GDP for the UK rose 0.6% in Q2 versus the forecast of 0.6%.
• UK GDP came in at 0% month-on-month in June versus the 0% estimate.
• GBP/USD holds gains above 1.2800 on UK GDP data.

The UK economy grew by 0.6% QoT in the three months to June after reporting a 0.7% increase in the first quarter of 2024. The market consensus was +0.6% in the reported period .

Great Britain GDP rose 0.9% versus 0.9% anticipated and 0.3% booked in Q1.

UK GDP came in at 0.% in June, up from a 0.4% increase reported in May, equal to the 0% print expected.

Meanwhile, the Services Index (December) came in at 0.8% 3M/3M from 1.1% previously.

Other UK data showed that industrial output and manufacturing output rose by 0.8% and 1.1% respectively on a monthly basis in June. Both indicators exceeded estimates.

Separately, total business investment fell 0.1% on a quarterly basis in the second quarter of 2024.

Following the release of UK GDP data, the country’s Chancellor of the Exchequer, Rachel Reeves, said: “the new government is under no illusions about the scale of the challenge we have inherited.”

Market reaction to UK data

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