Will GDP Shake Up Sleepy Pound?
Investors are keeping an eye on two key releases at 9:30 GMT – Preliminary GDP for Q4 and Manufacturing Production. Preliminary GDP rose 0.3% in Q3, shy of the forecast of 0.4%. Still, this was higher than the Q2 release of -0.2%. The estimate for the fourth quarter stands at a flat 0.0%. The monthly GDP report came in at -0.3% in November, short of the forecast of 0.0%. This indicator has not shown a gain since July, but the forecast for December is 0.2%.
The British manufacturing sector has struggled, and Manufacturing Production has managed only one gain in the past four months. In November, manufacturing production fell by 1.7%, its sharpest decline since April 2019. Analysts expect a rebound to 0.5% in December.