Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

U.K. Q1 GDP contracts 0.3%; recession deeper-than-expected

Published 05/24/2012, 04:41 AM
GBP/USD
-
Investing.com - The U.K. economy shrank more than initially estimated in the first three months of 2012, driven by the sharpest quarterly contraction in construction since the first quarter of 2009, official data showed on Thursday.

In a report, the U.K.’s Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the first quarter, compared to preliminary estimate of 0.2%.

Analysts expected U.K. GDP to remain unchanged from the preliminary estimate.

Annualized GDP fell at a rate of 0.1%, compared to a preliminary estimate of flat growth.

According to the ONS, the downward revision was driven by the sharpest quarterly contraction in construction since the first three months of 2009.

Following the release of that data, the pound added to losses against the U.S. dollar, with GBP/USD shedding 0.16% to hit 1.5667.

Meanwhile, European stock markets were broadly mixed. The FTSE 100 climbed 0.4%, the EURO STOXX 50 fell 0.2%, France’s CAC 40 dipped 0.1%, while Germany's DAX declined 0.3%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.