Investing.com – Growth in the UK economy in the second quarter went unrevised, but business investment stagnated in the three month period, causing worry over the British economy as Britain continues exit negotiations with the European Union, according to the data released on Thursday.
In a report, the Office for National Statistics said gross domestic product (GDP) expanded by a seasonally adjusted 0.3% in the second quarter. That was no surprise to economists who had expected it to be unrevised at 0.3%. The UK’s economy grew by 0.2% in the preceding quarter.
Year-over-year, UK economic growth grew 1.7% in the April to June period, also in line with forecasts for the reading to go unrevised.
Meanwhile, business investment registered no change from the prior quarter, missing forecasts for growth of 0.4% and compared to the 0.6% seen in the first quarter.
Year-on-year, business investment was also flat in the April to June period, compared to expectations of a 0.5% increase and the 0.7% gain registered in the first quarter of the year.
Additionally, the index of services in the U.K. rose 0.5%, in line with expectations and compared to a prior gain of 0.4%.
Exports increased 0.7%, compared to expectations for a 1.0% rise, while imports advanced 0.7%, compared to forecasts for a 0.5% gain.
The 0.1% advance in private consumption missed forecasts for a 0.3% gain.
Following the report, GBP/USD was trading at 1.2787 from around 1.2805 ahead of the release of the data, EUR/GBP was at 0.9218 from 0.9210 earlier and GBP/JPY changed hands at 139.84 compared to the prior 140.02.
Furthermore, European stock markets traded higher. London’s FTSE 100 rose 0.42%, the benchmark Euro Stoxx 50 advanced 0.46%, France's CAC 40 gained 0.37%, while Germany's DAX traded up 0.35%.