UK GDP Grows Less Than Expected

Ibeth Rivero

According to data released by the United Kingdom's Office for National Statistics, the country’s GDP rose by 0.4% in August (month-on-month), below expectations of 0.5% and above July’s 0.1% drop.

According to the estimations of the ONS, this brought the GDP to 0.8% below pre-pandemic levels.

In monthly terms, industrial production rose by 0.8%, above expectations of 0.2% and the previous month’s 0.3%. In annual terms, industrial production rose by 3.7%, above expectations of 3% but below the previous month’s 4.4%.

Similarly, manufacturing production advanced by 0.5% (month-on-month), beating expectations that it would remain in line with July’s 0.6%. In annual terms, manufacturing production advanced by 4.1%, below expectations of 6% and July’s 6.1%.

The trade balance with non-EU countries showed a deficit of £8.395 billion, greater than expectations of a £6.524 billion deficit and the previous month’s deficit of £8.106 billion. The data registered a £14.927 billion deficit in the goods trade balance, above expectations of £12 billion and July’s £14.095 billion.

The United Kingdom's economy has been recovering, though the spread of the delta variant, together with higher-than-expected inflation levels, have put the recovery process at risk.

Since the beginning of the pandemic, 8,231,437 COVID-19 cases have been reported in the United Kingdom, included 137,944 related deaths. The government is currently pushing a massive vaccination campaign. So far, 94.4 million doses have been distributed among the local population, with 45.2 million individuals now fully vaccinated, accounting for 67.2% of the total population.

Since the beginning of the week, the British pound has dropped by 0.04% against the US dollar, giving up part of the previous week's gains. On Tuesday, the pound dropped by 0.07% against the US dollar, losing ground for the third consecutive day and closing the session at the 1.3585 level.

By 9:58 GMT, the pound went up by 0.34% against the greenback to the 1.3632 level.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

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