25 Jul 2013
Flash: The breakdown of GDP growth – TD Securities
FXstreet.com (London) - Jacqui Douglas, Senior Global Strategist, Rates and FX Research at TD Securities broke down the UK GDP number.
Key Quotes:
“The details show the most broad-based growth that we’ve seen since the early days of the post-crisis recovery in late 2009 to early 2010, with gains in industrial production (+0.6% Q/Q), construction (+1.0%) and services (+0.6%)”.
“We had actually pencilled in stronger growth in the construction sector at +2.5% in our forecast models, and we suspect that the ONS’ forecast for June construction activity (the ONS looks for a decline of -2.3% M/M) could be proved overly pessimistic, so there’s a decent risk of a small upward revision to Q2 GDP when we get the second print on 23 August”.
Key Quotes:
“The details show the most broad-based growth that we’ve seen since the early days of the post-crisis recovery in late 2009 to early 2010, with gains in industrial production (+0.6% Q/Q), construction (+1.0%) and services (+0.6%)”.
“We had actually pencilled in stronger growth in the construction sector at +2.5% in our forecast models, and we suspect that the ONS’ forecast for June construction activity (the ONS looks for a decline of -2.3% M/M) could be proved overly pessimistic, so there’s a decent risk of a small upward revision to Q2 GDP when we get the second print on 23 August”.