Details from the Q1 2015 UK GDP prelim data report 27 April 2016

  • Q4 0.6%
  • 2.1% vs 2.0% exp y/y. Prior 2.1%
  • Feb index of services 0.1% vs 0.2% exp m/m. Prior 0.2%. Revised to 0.1%
  • 0.7% vs 0.8% exp 3m/3m. Prior 0.9%

Pretty much bang on the numbers with the y/y matching Q4 instead of falling.

No surprise to see manufacturing in the doldrums and it's still the services side of the economy that's keeping things afloat. In the current global environment, 2.1% growth isn't the worst it could be.

UK Q1 2015 GDP breakdown

GBPUSD didn't go lower than 1.4552 and is now back up at 1.4588. Overall I think the market was a little cautious about the prospect of growth being worse and now that it isn't we could see the pound try the upside again.

UK GDP y/y