Early estimates from the Office for National Statistics suggest UK GDP improved slightly in Q3 with growth of 0.4%, beating forecasts and bringing year-on-year growth to 1.5%. Economic Growth was lead predominantly by Services and Manufacturing sectors over the summer. Today's GDP release is an improvement on Q2 figures which saw 0.3% growth. However year-on-year growth of 1.5% still lags other G20 countries and historical norms for the UK, underlining the effect of Brexit uncertainty. The pound rallied on the news which caused the FTSE 100 to begin selling off, UK government debt was also being sold down on the expectation that this GDP surprise strengthens the Bank of England's conviction to raise rates at its November meeting.
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ECB to begin tapering Eurozone QE in January 2018
ECB to begin tapering Eurozone QE in January 2018