UK: Upside lean confirmed from GDP data - TDS

Analysts at TD Securities suggest that UK’s July monthly GDP report confirmed their upside lean, with a 0.3% m/m gain.

Key Quotes

“Growth was driven mainly by the services sector, which rose 0.3% m/m. A decline in manufacturing (-0.2% m/m) was largely offset by healthy activity in the construction sector (+0.5% m/m).”

“The three-month growth rate in GDP is 0.6% 3m/3m. This should leave third quarter growth on a relatively solid footing, but many one-off factors drove growth over the May-Jul period (eg, the World Cup, warm weather), and we expect that as these come off, growth should slow somewhat in the second half of the year, leaving the BoE comfortably on hold until well into 2019.”