TD Securities analysts evaluate the latest UK Gross Domestic Product (GDP) data.
Quarterly GDP could surprise the Monetary Policy Committee on the upside
“UK GDP rose 0.1% m/m in February, following an upwardly revised 0.3% m/m expansion in January. Although both hospital and food services fell sharply, as we expected, a notable 6.5% m/m increase in “land transportation services and pipeline transportation services,” along with a 1.5% month-on-month rise in telecommunications, were enough to boost services by 0.1% month-on-month. On the other hand, the strong 1.2% month-on-month increase in manufacturing production also contributed to the bullish surprise, especially thanks to transportation equipment, which rose 3.7% month-on-month.”
“Taken together, February's better-than-expected increase, along with a 0.1% upward revision to January data, leaves quarterly GDP on track to surprise the Monetary Policy Committee to the upside in the first quarter. (BoE: 0.1% quarter-on-quarter)”.
Source: Fx Street
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