It was a busy morning on the UK economic calendar. Q1 GDP and industrial and manufacturing Production figures drew attention.
Disappointing numbers weighed on the Pound ahead of the UK open.
UK Economy Grows More Slowly than Anticipated in Q1
In the first quarter, the UK economy grew by 0.8% quarter-on-quarter versus a forecasted 1.00%. The economy expanded by 1.3% in the previous quarter.
Year-on-year, the economy grew by 8.7% versus a forecasted 9.0%. The economy expanded by 6.6% in the fourth quarter of last year.
In March, the economy contracted by 0.1% after no growth in February.
According to the Office for National Statistics,
- Service fell by 0.2% on the month, weighing on growth in March.
- Production fell by 0.2%, partially offset by construction (+1.7%).
- Manufacturing production fell by 0.2%, with the manufacture of basic pharmaceutical products and pharmaceutical preparations (-5.4%) being the largest contributors to the production decline.
- Monthly GDP is 1.2% above its pre-COVID pandemic level.
- Despite a bad March, Services is 1.5% above its pre-coronavirus level.
- Construction and production were 3.8% and 1.6% below, however.
Market Impact
Ahead of today’s stats, the Pound struck a current-day high of $1.22596 before hitting reverse.
In response to today’s stats, the Pound slid to a current-day low of $1.21807.
At the time of writing, the Pound was down by 0.53% to $1.21873.
Looking at the Futures, the FTSE100 was down 164 points, with the European bourses and US majors also set for a bearish open.
Next Up
NIESR GDP estimate for the UK are due out later, ahead of US wholesale inflation and jobless claim figures.