Investing.com – As expected, growth in the U.K. economy in the first three months of the 2016 went unrevised, although business investment suffered a downward revision in the final estimate released on Thursday.
In a report, the Office for National Statistics said gross domestic product (GDP) expanded by a seasonally adjusted 0.4% in the first quarter, unchanged in this final estimate and in line with expectations. The U.K.’s economy grew by 0.6% in the preceding quarter.
Year-over-year, U.K. economic growth grew 2.0% in the three months ended March 31, also in line with forecasts and unchanged from the prior estimate. The U.K. economy expanded at an annualized rate of 2.1% in the fourth quarter of 2015.
Meanwhile, business investment fell by a seasonally adjusted 0.6% in the first quarter, below forecasts for the prior drop of 0.5% to be revised upwards to a 0.4% decline. That followed a decline of 2.0% in the preceding quarter.
Year-on-year, business investment retreated 0.8% in the first three months of the year, compared to the prior reading of a 0.4% decline and the 3.0% rise registered in the fourth quarter of 2015.
Additionally, the index of services in the U.K. rose 0.5%, above consensus expectations for a 0.4% advance and after a prior gain of 0.6%,
Immediately following the report, GBP/USD was trading at 1.3461 from around 1.3467 ahead of the release of the data, EUR/GBP was at 0.8256 from 0.8258 earlier and GBP/JPY changed hands at 138.29 compared to the prior 138.39.
Furthermore, European stock markets traded with mixed signs. London’s FTSE 100 lost 0.22%, the EURO STOXX 50 inched up 0.08%, France's CAC 40 advanced 0.21%, while Germany's DAX edged forward 0.02%.