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U.K. economy grows 0.5% in Q4, unchanged from initial estimate

Published 02/26/2015, 04:32 AM
© Reuters.  U.K. economy grows 0.5% in fourth quarter
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Investing.com - The U.K. economy grew in line with preliminary estimates in the fourth quarter, underlining optimism over the country’s economic outlook, revised data showed on Thursday.

In a report, the Office for National Statistics said gross domestic product expanded by a seasonally adjusted 0.5% in the final three months of 2014, unchanged from an initial estimate and in line with expectations.

The U.K.’s economy grew by 0.7% in the preceding quarter.

Year-over-year, U.K. economic growth grew 2.7% in the three months ended December, unchanged from a preliminary reading. The U.K. economy expanded at an annualized rate of 2.6% in the third quarter of 2014.

The data showed that fourth quarter private consumption was revised down to a 0.5% gain from a preliminary estimate of 0.7%, while government spending was flat in the fourth quarter, downwardly revised from an initial forecast of a 0.5% increase.

Meanwhile, total business investment fell by a seasonally adjusted 1.4% in the three months to December, disappointing forecasts for a 1.9% gain and following a 1.2% decline in the preceding quarter.

Additionally, the index of services in the U.K. rose 0.8% in the fourth quarter, above expectations for 0.7% and after rising 0.8% in the preceding three months.

GBP/USD was trading at 1.5525 from around 1.5530 ahead of the release of the data, while EUR/GBP was at 0.7313 from 0.7310 earlier.

Meanwhile, European stock markets remained mostly higher. London’s FTSE 100 shed 0.1%, the EURO STOXX 50 tacked on 0.2%, France's CAC 40 rose 0.25%, while Germany's DAX inched up 0.2%.

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