UK Q1 GDP downgraded, OPEC extends production cuts

UK GDP growth for the first quarter of 2017 has been downgraded from 0.3% to 0.2% by The Office for National Statistics (ONS), showing the economy to be growing at a slower rate than previously thought. The ONS highlighted consumer-facing industries such as retail and accommodation to be detractors and that rising prices were playing a part as household spending fell. FTSE equities are showing little reaction hours after the news and are currently trading flat, with Sterling only seeing slight depression. UK Government debt is being bought, sending yields downwards, however. The oil cartel, OPEC, has also today agreed to extend production cuts in a bid to strengthen the price of oil, coming as good news, yet perhaps not good enough as markets also hoped for the depth of production cuts to be increased. This has left oil being sold today after some strong gains over the last week