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British GDP in the 1st quarter soars by 0.1% - the worst outcome since the end of 2012
In the first quarter the British GDP tacked on by about 0.1% in annual terms, as follows from preliminary data uncovered by the National Statistical Office (ONS).
It appears to be the weakest rise since the end of 2012, as the Guardian pointed out. The slowdown in surge rates at the beginning of this year was due to in particular snow weather, which affected the volume of construction as well as retail sales.
Market experts on average expected an increase of up to 0.3% in quarterly terms and also up to 1.4% in annual terms. That’s what Trading Economics informed.
In the fourth quarter of the previous year, the increase in GDP accounted for about 0.4% as well as 1.4%, respectively.
The most significant negative impact on the rate of economic recovery in the country was provided by the construction sector – it headed south approximately 3.3%.
Services in the United Kingdom tacked on by up to 0.3%, processing industry acquired 0.2%, while industrial production managed to gain by about 0.7%.
The preliminary estimate of ONS accounts for approximately 44% of all data collected for GDP.
After the publication of data on GDP, the British pound dived to the lowest value for the last seven weeks – demonstrating an outcome of $1.3815.
Investors suggest that a weak economic recovery is going to force the Bank of England to wait with a lift in interest rates. Money market traders are currently assessing the chances that the British Central Bank will take such a step at the gathering next month, only at the level of 27% versus 56% on Thursday. The majority predicts the first this year rate increase in December versus the previously anticipated November.
USD’s rally takes a pause, while riskier assets are modestly rising.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!