UK: Disappointing Q2 GDP – TD Securities

According to analysts at TD Securities, UK’s Q2 GDP was disappointing, with the -0.2% q/q result softer than consensus of flat and TD’s -0.1% forecast.

Key Quotes

“The June GDP print was flat m/m, so not leaving any real momentum into Q3. Details show that there was a pretty chunky drag from inventories (-2.15ppts), which was something that we highlighted as an especially difficult component to forecast after the Q1 pre-Brexit inventory build.”

“We can probably expect that to bounce back substantially toward the end of Q3, as businesses begin to prepare once again for the next Brexit deadline.”