Forex News

The economic growth in the UK is gaining momentum

UK economic growth picked up in May after it stopped earlier this year, influencing expectations that the Bank of England would raise interest rates in August.

Gross domestic product in May rose by 0.3 percent compared with the previous month against growth of 0.2 percent in April and zero dynamics in March, according to the monthly estimate of the Office of National Statistics.

Growth was the strongest since November, when the economy grew at the same rate.

Services affected the monthly growth, as the nye traders got double profit because of the warm weather and the royal wedding. In May, services increased by 0.3 percent.

In a more reliable 3-month comparison, GDP grew by 0.2 percent of the c / k in May after no changes for the three months to April.

"The first of our new sliding of GDP estimates shows a mixed picture of the UK economy with a modest growth due to the services sector, partially offset by a fall in construction and industrial production, "said one of the agency's top executives Robert Kent-Smith.

" Retail, Computer Programming and Legal Terms meadows showed strong dynamics from March to May, while house construction and manufacturing production decreased. "

According to the management official, the construction also resumed growth after a weak couple of months.

Andrew Wishart, an economist at Capital Economics, that the economy can exceed the expectations of the Bank of England, given the strength of the survey of purchasing managers in June.

"Assuming that political events will not lead to a deterioration in economic prospects, we continue to expect interest rates to rise in the next "

Industrial production in the UK declined in May for the third month in a row, despite the economists' forecast for expansion, according to data from the National Statistical Service.

Industrial production in May fell 0.4 percent on a monthly basis against the decline in April by 1.0 percent. On the contrary, economists had expected a 0.5 percent increase in the month.

The manufacturing sector in the UK expanded by 0.4 percent on a monthly basis in May, helped by growth in nine of the thirteen subsectors. However, this was below the expected growth of 0.8 percent.

Another statistical office report showed that the production of the construction sector rose sharply in May by 2.9 percent on a monthly basis against the expected growth of 0.3 percent. [19659002] Compared to the reporting month of the previous year, the volume of construction increased in May by 1.6 percent against a fall of 1.2 percent in April.

The deficit of the visible trade in the UK decreased slightly in May, as reported by the Office of National Statistics on Tuesday. Trade in goods showed a deficit of 12.36 billion pounds in May, which is below the figure of 12.40 billion pounds, noted in April. It was expected that the deficit would be 12.0 billion pounds sterling. In the same period of 2017, the deficit was 11.4 billion pounds sterling.