On Wednesday morning the Office for National Statistics released the UK quarterly GDP growth release that remains unchanged at 0.7%. The release highlighted a positive that the construction industry output increased by 0.2% in the final quarter of 2013, compared to a previous estimate of a 0.3% decrease.
The 2013 full year growth estimate is 1.8%, which though significantly below the pre-crisis levels this is a positive economy and something to build upon. The UK economy has begun to stabilise following the financial crisis and growth has returned.
The rate of employment increased for the third consecutive quarter, reaching 72.1% and up from 71.8% in Q3 2013. This could signal that the next ILO unemployment release could reach Carney’s forward guidance 7% threshold.
In the FX markets GBP prior to the release dropped against the greenback by around 25 pips, however the release has seen cable recover and is now back to unchanged.