| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | Manufacturing Production (MoM) | August | -1.2% | 0.2% | 1.1% |
| 06:00 | United Kingdom | Industrial Production (MoM) | August | -0.7% | 0.2% | 0.5% |
| 06:00 | Germany | CPI, m/m | September | -0.1% | 0% | 0.0% |
| 06:00 | United Kingdom | GDP m/m | August | 0% | 0.2% | 0.2% |
| 06:00 | Germany | CPI, y/y | September | 1.9% | 1.6% | 1.6% |
GBP firmed against most of its major counterparts in the European session on Friday as investors responded to the UK GDP report for August.
The Office for National Statistics (ONS) reported that the UK’s GDP grew by 0.2% MoM in August after two straight months of a flat MoM performance. That was in line with economists’ expectations. According to the report, production (+0.5% MoM), construction (+0.4% MoM) and services sector (+0.1% MoM) all expanded in the final summer month.
On a YoY basis, the UK economy increased by 1.0% in August, recording the strongest annual growth in three months, which, however, was below economists’ forecast of a 1.4% YoY advance.
A modest monthly gain in the UK’s GDP indicated that growth momentum in the country is likely to ease in the second half of the year, supporting the case for another rate cut by the Bank of England at its November meeting.
Markets’ focus is now shifting to the UK data on inflation and the labour market due next week, which could offer more clarity on the BoE’s further rate moves.