GBP/USD, EUR/GBP flows: June GDP holds up, though recent trend still stagnant
GDP holds up as weather impact chequered, some world cup lift too
Following flat and -0.1%, the 0.3% print leaves recent trend stagnant all the same
Sterling left largely unmoved
UK GDP surprisingly holds up better than expected in June coming in at 0.3%m/m vs market flat, although leaving Q2 at 0.4%q/q, in line with consensus.
The June figure does still leave the recent performance as pretty stagnant though with the prior month revised down to flat and -0.1% seen in Apr, to leave the 3mma at 0.05%~, so still very much in an unimpressive lull since the temporary spring pick up.
ITC and scientific research are bright spots in the mix though for services, Production was a weak area at -0.2% in the month and the 3mma at -0.1%m/m. Interesting, the ONS note that the much-expected hit from the heatwave actually proved more mixed with some consumer accommodation/recreation sectors reporting a lift while others such as construction noted a hit. The World Cup also a positive influence. Net result is sterling little changed on the morning.