GBP/USD holds steady as UK GDP rises 0.1%, industrial output declines in September
September was not a strong month for the UK economy
Mixed UK GDP and industrial data fail to impact GBP recovery. At the time of writing, the GBP/USD pair is trading below 1.269, which is 0.2% higher than the previous day.
Preliminary UK GDP data for Q3 failed to meet market expectations. From July to September, the UK economy grew by 0.1%, below the market forecast of 0.2%.
After a 0.2% growth in August, September saw a decline of 0.1% in monthly GDP, missing the expected 0.2% growth.
However, the annual GDP growth for Q3 came in at 1.0%, matching expectations and higher than the 0.7% recorded in the previous quarter.
Other economic data
September was not a strong month for industrial and manufacturing production, which fell by 0.5% and 1%, respectively.
Nonetheless, total business investment grew by 1.2% in Q3, and the services sector showed modest growth of 0.1%.
The mixed economic data did not significantly impact the British pound, which, as of the time of writing, remains under pressure from the US dollar, trading below 1.269.
As we wrote, the UK's unemployment rate came in higher than expected. According to the Office for National Statistics (ONS), the unemployment rate for Q3 rose to 4.3%, compared to the expected 4.1%. Additionally, the number of people claiming unemployment benefits increased by 26,700 in October, following a revised rise of 10,100 in September, though still below the forecasted 30,500.
