Details from the Q2 2016 UK preliminary GDP data report 27 July 2016

  • Q1 0.4%

  • 2.2% vs 2.0% exp y/y. Prior 2.0%

  • May index of services -0.1% vs 0.1% exp m/m. Prior 0.6%

  • 0.3% vs 0.3% exp y/y. Prior 0.5%.

Only about a third of the full data used is available in this report, the rest is estimated. You'll remember that the UK had a good couple of months Apr/May, particularly in manufacturing.

It hasn't taken long for the hot air brigade to pipe up and finance minister Hammond says that the data shows that the fundamentals of the British economy are strong and that along with the BOE, the Treasury will take whatever action is needed to support the economy. Let's see what his reaction is over the data in Q3 as that will tell us about the effect of Brexit. So far it's not been off to a good start.

The pound is looking through these numbers as it knows the real issue is the data since Brexit. GBPUSD flapped around in a 40 odd pip range between 1.3100 and 1.3140. EURGBP did about the same between 0.8390 and 0.8350.

Back to the data, and as I mentioned, the ONS say that the data was boosted by the strong industrial output, and services in April. IP had its strongest quarter since Q3 1999.

UK GDP details

UK GDP y/y