The UK economy contracted by 0.3% on the quarter in the three months to September of 2022 vs. -0.2% prior, the final revision confirmed on Thursday. The market expected a reading of -0.2% in the reported period.

On an annualized basis, Britain’s GDP rate increased by 1.9% in Q3 vs. 2.4% registered in the first estimate while missing 2.4% expectations.

Meanwhile, the UK Q3 Current Account arrived at £-19.402 when compared to the £-33.224B expected and the second quarter’s £-35.086B.

The country’s Total Business Investment data for Q3 came in at 1.3% QoQ and -2.5% YoY.

FX implications

GBP/USD was last seen trading at 1.2115, retreating from daily highs of 1.2135, still up 0.25% on the day. The Pound Sterling remains unimpressed by the mixed UK data dump.

About the UK GDP

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