• UK GDP arrived at -0.3% MoM in August vs. 0% expected.
• GBP/USD keeps its range around 1.1000 on UK GDP big miss.

The UK Gross Domestic Product (GDP) monthly release showed on Wednesday that the economy returned to a contraction in August, arriving at -0.3% vs. 0% expectations and 0.2% previous.

Meanwhile, the Index of services (August) came in at -0.1% 3M/3M vs. 0.2% estimate and -0.2% prior.

Key takeaways via ONS

Market reaction

The Cable remains little changed at around 1.1000 on the below-forecast UK growth numbers. The spot is adding 0.32% 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).