Apr 25, 2013
Forex Flash: BoE comfortable in holding policy after UK Q1 GDP surprise – TD Securities
Today’s publication of UK Q1 GDP allowed the UK economy to escape the stigma of the dreaded “triple-dip” recession, with a +0.3% quarterly expansion and beating consensus expectations of +0.1%. “The unexpected strength came from the services side of the economy with an inexplicable +0.6% aggregate gain there, and a particularly notable 1.4% increase in the transportation and communication sector, which is completely at odds with the reports of poor weather disrupting the distribution channels”, wrote analyst Jacqui Douglas, adding that this upside surprise seems to be one that will stick, rather than pull expectations out of Q2, “and we would expect GDP to linger around this same pace of growth in the second quarter”.
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