UK’s GDP Beats Expectations

This morning, the UK’s Office for National Statistics released data indicating that the country’s Gross Domestic Product (GDP) expanded by 0.3% on a monthly basis in December. This figure surpassed market expectations, which had predicted a growth rate of 0.2%. Notably, the preceding reading for November reflected a contraction of 0.3%.

The GDP index measures the change in the inflation-adjusted value of all goods and services produced by the UK economy. As the broadest measure of economic activity, it serves as a crucial indicator of the economy’s health. Issued monthly, approximately 40 days after the month’s conclusion, the GDP’s effects are reflected in currency movements, particularly those of the pound sterling against other currencies.

In addition to GDP growth, manufacturing production in the UK also demonstrated positive momentum, expanding by around 0.3% in December. This surpassed market expectations of a 0.3% growth rate and marked an improvement from the previous reading, which indicated a contraction of 1.1% in November.