UK Economy Shrinks in Q2 As Brexit Pressures Manufacturing

The British economy has shrunk for the first time since late 2012, after official data Friday showed second-quarter gross domestic product (GDP) contracted by 0.2%.

A consensus of analyst forecasts had predicted the economy would flatline during the period.

In reaction, the pound dipped below $1.21 versus the dollar but soon recovered ground. Against the euro, the pound also fell. The FTSE 100, which often reacts inversely to the fortunes of the pound, rose after the results but was still in negative territory on Friday morning.

Manufacturing was the biggest contributor to the overall contraction, slipping 2.3% quarter-on-quarter in the three months to June. That figure was the biggest quarterly fall since the first three months of 2009.

via CNBC

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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