The second estimate for 3rd quarter UK GDP was released at 0.7% by the Office for National Statistics (ONS). The second estimate was in line with the initial release leading to a minimal weakening of GBP in the FX market. The annual GDP (between Q3 2013 – Q3 2014) grew by 3.0%, unrevised from the previous estimate.
Though the release was a positive figure, the pace of growth has slowed, dragged by the trade balance. The slowdown of growth is a concern to investors that the UK economy isn’t completely “fixed” that would enable the MPC to tighten monetary policy. The data was buoyed by strong services output and household consumption.
GBPUSD trades 1.5684 (9:50am London)
Link to full ONS release