GBP
U.K. economic growth accelerated in the second quarter of the year, helped by a
big jump in oil and gas production as well as business services and finance
sector strength. The 0.7 percent increase in gross domestic product came
in line with consensus and marked a 10th straight expansion and followed a 0.4
percent advance in the previous three months.

The report suggests the recovery remains uneven and led by the dominant services

GBP
U.K. economic growth accelerated in the second quarter of the year, helped by a
big jump in oil and gas production as well as business services and finance
sector strength. The 0.7 percent increase in gross domestic product came
in line with consensus and marked a 10th straight expansion and followed a 0.4
percent advance in the previous three months.

The report suggests the recovery remains uneven and led by the dominant services
industry, where growth accelerated to 0.7 percent. While oil and gas helped
industrial output rise 1 percent on the quarter, the most since the end of
2010, manufacturing declined 0.3 percent. Construction was flat during in the
period, recovering from a slight fall in the previous quarter.

“After a slowdown in the first quarter of 2015, overall GDP growth has returned
to that typical of the previous two years,” Joe Grice, chief economist at the
Office for National Statistics, said in a statement. The rebound takes GDP per
head “back to broadly level with its pre-economic downturn peak” in the first
quarter of 2008, he said.

The data “bring the likelihood of a rate rise later this year that little bit
closer,” said Chris Williamson, chief economist at Markit in London. “Though
policy makers will be keenly watching the data flow over the coming months to
ensure the economic upturn remains on track and able to withstand higher
borrowing costs.”

USD
US consumer sentiment plumbed its lowest level in 10 months, falling short of
expectations for little change in July, as turmoil in Greece and China stirred
global financial markets. The index of consumer confidence fell to 90.9
from 99.8 in June, according to the Conference Board. Economists had forecast the
index to remain relatively stable at a reading of 100.

The reading marked its lowest level since September 2014. The June figure was
originally reported at 101.4.

Lynn Franco, director of economic indicators with the Conference Board, said
that the index remained in territory that suggested an “expanding
economy”, but that short-term expectations had deteriorated.

“A less optimistic outlook for the labour market, and perhaps the uncertainty
and volatility in financial markets prompted by the situation in Greece and
China, appears to have shaken consumers’ confidence. Overall, the Index remains
at levels associated with an expanding economy and a relatively confident
consumer.” She went on to say.

 

Key
Announcements

GBP – 19:00 :UK Federal Reserve Interest Rate
Decision expected to remain unchanged at 0.25%