There has been a series of data releases for the UK this morning, including UK GDP data. The data showed that the economy shrank by 20.4% in the second quarter of this year and 21.7% year-on-year, which was slightly less than the 22.4% predicted. The economy has, therefore, gone into recession as expected.
A closer look at the report shows that the economy grew 8.7% in June, which beat economic estimates for growth of 8.0% and confirms a recovery is now underway. The pound has possibly retained its strength against both the euro and dollar because of this element, which suggests that the outlook is fairly positive.
Manufacturing and industrial production figures also came in this morning, both showing a slight uplift month-on-month but a decline year-on-year.
