• UK GDP arrived at 0.2% MoM in July vs. 0.5% expected.
• GBP/USD remains unfazed above 1.1600 on UK GDP miss.

The UK GDP monthly release showed that the economy rebounded in July, growing at 0.2% vs. 0.5% expectations and -0.6% previous.

A Reuters poll of economists had pointed to month-on-month growth of 0.4% in July.

Meanwhile, the Index of services (July) came in at -0.2% 3M/3M vs. -0.8% estimate and -0.4% prior.

Key takeaways via ONS

“Services grew by 0.4% in July 2022, after a fall of 0.5% in June 2022, and was the main driver to the rise in GDP; information and communication grew by 1.5% and was the largest contributor to the services growth in July.”

“Production fell by 0.3% after a fall of 0.9% in June 2022; this was mainly because of a fall of 3.4% in electricity, gas, steam, and air conditioning supply.”

“Construction also fell in July 2022 by 0.8%, after a fall of 1.4% in June 2022; the decrease in monthly construction output in July 2022 came solely from repair and maintenance, which fell 2.6%.”

Market reaction

The Cable remains little changed on the below-forecast UK growth numbers. The spot is adding 0.22% on the day.

About UK GDP

The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).