UK GDP Slowed Down in Q3 Says Think Tank

UK economic growth halved in the last three months, according to analysis by a respected independent think tank, which is worse than the market expected and adds credence to predictions that the economy will contract in the third quarter and then fall into recession.

Based on its estimates, the National Institute of Economic and Social Research (NIESR) calculated that gross domestic product (GDP) grew by 0.3% in the three months ending in July, down from 6% in the three months to end-June and short of consensus City forecasts for a 0.4% increase.

NIESR said the estimate was consistent with its latest quarterly forecast of a 0.2% contraction in the third quarter.
The thinktank estimates that there is an even-money chance of a technical recession between the third quarter of 2016 and the final quarter of 2017.

James Warren, a research fellow at the institute said this was as marked economic slowdown.
“The month on month profile, suggests that the third quarter has got off to a weak start, with output declining in July. Our estimates suggest that there is around an evens chance of a technical recession by the end of 2017.”

via Digital Look

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza