United Kingdom Monthly GDP

Info

History

Chart

Impact:

Low

Latest Release:

Date:

Actual:

0.3%

Forecast:

Previous/Revision:

0.2%

Period: May

What Does It Measure?

The United Kingdom Monthly GDP measures the total value of goods and services produced within the country during a specific month, reflecting the overall economic health and production capacity. This indicator primarily focuses on economic activity across various sectors, such as services, manufacturing, and construction, assessing key areas like production output, employment levels, and consumption.

Frequency

The Monthly GDP report is released on a monthly basis, typically within six weeks following the end of the month, and it often includes both preliminary and revised figures.

Why Do Traders Care?

Traders closely monitor the Monthly GDP as it provides crucial insights into the UK's economic performance and health, directly influencing financial markets. Positive or higher-than-expected readings can boost the British Pound (GBP) and equities, while weaker results may exert downward pressure on these assets, affecting economic forecasts and investment decisions.

What Is It Derived From?

The Monthly GDP is calculated using a combination of output data, including production indices and surveys from providers across various sectors, such as manufacturing and services. It typically employs techniques such as the expenditure approach, incorporating data on consumption, investment, government spending, and net exports to derive a comprehensive picture of economic activity.

Description

The Monthly GDP is a preliminary estimate based on early data from economic surveys and statistics, which may be subject to revisions in subsequent months to reflect more accurate information. This estimation allows traders to gauge real-time economic trends but may lead to significant market reactions as adjustments occur with finalized numbers.

Additional Notes

This indicator serves as a coincident economic measure, providing immediate insight into the current state of the economy rather than future trends. It is often juxtaposed with quarterly GDP figures and other economic indicators, essential for understanding broader economic conditions and trends both domestically and internationally.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for GBP, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise
Jul 10, 2018		0.3%		0.2%