UK GDP contracted -0.4% mom in April, much worse than expectation of -0.1% mom. Index of production dropped -2.7%, manufacturing dropped -3.9% and construction dropped -0.4%. Index of services and agriculture were flat mom. In the three months to April, GDP grew 0.3%, slowed from 0.5% in the period from January to March..
Head of GDP Rob Kent-Smith said: “GDP growth showed some weakening across the latest 3 months, with the economy shrinking in the month of April mainly due to a dramatic fall in car production, with uncertainty ahead of the UK’s original EU departure date leading to planned shutdowns. There was also widespread weakness across manufacturing in April, as the boost from the early completion of orders ahead of the UK’s original EU departure date has faded.”
EUR/GBP breached 0.8902 temporary top after the release. It should be resuming recent rise from 0.8472 towards 0.9101 key resistance.
