New data revealed on Monday that UK gross domestic product grew at the weakest rate year-on-year since 2010.
The GBP/USD is trading around 1.28 on the missed GDP expectations.
The Office for National Statistics said on Monday that UK GDP increased by 0.3% in the third quarter from July to September, following a 0.2% decline in the previous quarter.
When compared to the third quarter of the year prior, the economy grew by 1% – the weakest figure since the first quarter of 2010.
“The underlying momentum in the UK economy shows some signs of slowing,” the Office for National statistics said in its report.
Founder and CEO of REL Capital, Andy Scott, provided a comment on the newly released figures.
“The basket of economic performance indicators just published is a mixed bag but when viewed in context to a political dynamic that is more Carry On film than carry on as usual, the economy is holding up ok,” Andy Scott said.
“GDP, arguably the most important measure of fiscal health, is still hanging on in there in positive territory. Kicking and screaming with it’s head just above the surface, for sure but still breathing nonetheless at a positive 1% up year on year and quarter to quarter,” Andy Scott continued.
“In particular, construction output is better than the forecasters had expected by some way, as is overall business investment which, whilst flat in real terms, provides a further silver-lining versus expectation. Stiff upper lip and all that.”
The quarter was a rather turbulent one, with many uncertain developments in the UK political landscape.
At the end of October, the UK was granted yet another extension to its deadline to leave the European Union.
Parties are now preparing for a general election which will take place at the end of the year.
What will the future hold for the UK’s economy?
