Breaking: UK Preliminary GDP misses estimates with 1.0% QoQ in Q4

• Quarterly GDP for the UK expanded by 1.0% in Q4 vs. 1.1% expected.
• UK GDP arrived at -0.2% MoM in December vs. -0.6% expected.
• GBP/USD is little changed around 1.3525 on mixed UK GDP.

The British economy expanded by 1.0% QoQ in the fourth quarter of 2021 when compared to a 1.1% growth seen in Q3 and 1.1% expectations. On an annualized basis, the Kingdom’s GDP arrived at 6.5% in Q4 vs. 6.4% expected and 6.8% prior.

The UK GDP monthly release showed that the economy contracted in December, coming in at -0.2% vs. -0.6% expected and 0.9% previous.

Meanwhile, the Index of services (December) arrived at 1.2% 3M/3M and 1.3% prior.

Market reaction

The cable keeps its range around 1.3525 on the mixed UK growth numbers. The spot is down 0.24% 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).