UK GDP contracts 0.1% MoM in May vs. -0.3% expected

• UK GDP arrived at -0.1% MoM in May vs. -0.3% expected.
• GBP/USD stays below 1.3000 despite upbeat UK GDP data.

The British economy contracted 0.1% in May, beating the -0.3% expectations and following a 0.2% expansion in April.

Meanwhile, the Index of services (May) came in at 0% 3M/3M vs. -0.4% estimate and 0% prior.

Market reaction                                                         

The GBP/USD pair is little changed on the UK GDP data. At the press time, the spot is up 0.05% on the day to trade at 1.2994, awaiting the US data and Fedspeak for fresh trading impetus.

About UK GDP

The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).