Investing.com - The U.K. economy grew in line with expectations in the fourth quarter, thanks to a strong performance in the services sector, preliminary official 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 three months ended December 31, matching forecasts. The U.K.’s economy grew by 0.4% in the preceding quarter.
Output increased in 2 of the main industrial groupings within the economy in the final three months of 2015. Services, which account for about 79% of GDP, increased by 0.7% and agriculture increased by 0.6%. In contrast, production decreased by 0.2%, while construction output decreased by 0.1%.
Year-over-year, U.K. economic growth expanded 1.9% in the fourth quarter, also in line with expectations. The U.K. economy grew at an annualized rate of 2.1% in the third quarter.
GBP/USD was trading at 1.4285 from around 1.4268 ahead of the release of the data, while EUR/GBP was at 0.7641 from 0.7654 earlier.
Meanwhile, European stock markets were mostly higher. London’s FTSE 100 tacked on 0.15%, the EURO STOXX 50 inched up 0.3%, France's CAC 40 added 0.35%, while Germany's DAX dipped 0.2%.