UK GDP flat in Q4, poor production offset services and construction

17-02-2020

UK GDP grew 0.3% mom in December, above expectation of 0.2% mom. For Q4, GDP growth was flat at 0.0% qoq, matched expectations. Services rose 0.1% in the quarter while construction grew 0.5%. But production contracted -0.8%, offsetting the contributions of the other two sectors.

Head of GDP Rob Kent-Smith: “There was no growth in the last quarter of 2019 as increases in the services and construction sectors were offset by another poor showing from manufacturing, particularly the motor industry. The underlying trade deficit widened, as exports of services fell, partially offset by a fall in goods imports.”

For December, industrial production rose 0.1% mom, dropped -1.8% yoy, versus expectation of 0.3% mom, -0.8% yoy. Manufacturing rose 0.3% mom, dropped -2.5% yoy, versus expectation of 0.5% mom, -3.7% yoy. Goods trade balance turned into GBP 0.85B surplus, better than expectation of GBP -10.0B deficit.

Source: Action Forex