GDP Grows 0.6% on Quarterly Basis
- U.K. economy expands in Q2
- GDP grows by 0.6% quarterly rate
- Services sector growth drives expansion
- Manufacturing and construction decline offset by professional, scientific and technical activities subsector
- Unemployment rate rises following inflation downturn
The U.K. economy continued to expand at a solid rate in the second quarter, driven by services sector growth, according to data released Thursday. The Office for National Statistics (ONS) reported that gross domestic product (GDP) grew at a 0.6% quarterly rate, which was a gain of 0.9% from the year-earlier period. Unlike the U.S., the U.K. and European countries do not annualize GDP growth rates. The rise was a tenth of a percentage point below the Bank of England’s forecast but marked the second quarter of growth, following three periods of flat to negative activity. Growth in the professional, scientific and technical activities subsector as well as information and communication drove services sector growth, which offset a manufacturing decline and a slight decline from construction. The U.K. measures GDP monthly, and the economy didn’t expand at all in June due to a doctor’s strike and lower retail sales volumes. The Bank of England made its rate cut earlier this month following a sharp downturn in inflation, with the unemployment rate rising from last year’s low levels.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the U.K.’s economy growth, citing official data from the Office for National Statistics and expert opinions. It also explains the factors contributing to the growth and its impact on the currency exchange rate.
Noise Level: 3
Noise Justification: The article provides relevant information about the U.K.’s economy growth and its sectors’ performance, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks. It also doesn’t offer actionable insights or new knowledge for readers.
Private Companies: Raymond James Investment Services
Key People: Jeremy Batstone-Carr (European strategist)
Financial Relevance: Yes
Financial Markets Impacted: The pound (GBP) was impacted as it gained 0.2% against the US dollar following the positive GDP growth data.
Financial Rating Justification: This article discusses the U.K.’s economic growth and its impact on financial markets, specifically mentioning the pound’s performance against the US dollar.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text
Move Size: No market move size mentioned.
Sector: All
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks, Currency
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