UK GDP Up Marginally in Q1, 2016

Andamento del mercato - 27/04/2016

The UK's economy expanded at a pace of 0.40% in the first quarter of 2016, compared to a 0.60% increase in 2015’s fourth quarter, according to data from the UK's Office for National Statistics. On a year over year basis, growth was muted, rising 2.10%, no faster than the pace set last year. Concerns on the UK's referendum vote regarding its EU membership has sapped strength from the economy as potential investments into UK businesses prefer to stay on the sidelines until the final vote.

The services sector continued to drive the economy while industrial production managed to bounce back, rising 1.90% but construction plunged 4.40%. Further economic indicators already published continue to point to a bleak outlook with the Markit’s services PMI indicating an expectation for sluggish growth in the second quarter. The situation will not be clear until the end-of-June Brexit decision.


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