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British GDP tacks on
For the last three months, the rate of economic surge in the United Kingdom headed north, as activity resumed in January after a dismal end of 2018.
Britain’s GDP rallied by approximately 0.5% for the three months to January. That’s what the Office for National Statistics uncovered on Tuesday. It’s a minor uptick from the 0.4% rally observed for the three months to December. What’s more, it’s above experts’ estimates for a 0.2% leap.
For the latest three months, surge was still poor, with dives in manufacture of metal products, vehicles as well as construction repair work all impacting economic surge.
This sluggish surge came notwithstanding the British economy rebounding from a dismal December.
In January, manufacturing output surged by 0.8%, while industrial production tacked on by about 0.6%.
With just over two weeks until Great Britain is set to depart from the European bloc, UK Prime Minister Theresa May is still struggling to get the country’s legislative body to approve her withdrawal deal. Britain’s parliament is anticipated to vote on the measure a bit later in day.
In negotiations with EU Commission President Jean-Claude Juncker Monday, UK Prime Minister had secured several changes as well as additions to the withdrawal pact, in a hope to convince dissenting UK lawmakers that it won’t leave Britain permanently trapped in a customs union with the European Union with no influence over its rules.
However, that’s not clear yet whether the updates are going to be enough to get the agreement through the country’s parliament. By the way, the original version was rejected by a margin of 230 votes and the vast majority of dissenting lawmakers have yet to tell they’ll underpin the new version.
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!