UK GDP figures revealed a slump in the third quarter
For the first time in six quarters the U.K. economy sagged within the three months through September, as the energy setback in Europe steered inflation to its peak in 40 years.
GDP dipped to 0.2% compared to the second quarter, results came a bit better than the forecasts of 0.5% slump, due to the enhanced industry’s performance in September. The industrial production gained 0.2% while we saw a steadied manufacturing output during the month, both were expected to fall more than expected.
The released figures validated the warnings of the Bank of England that highlighted earlier that the recession period could be the most stretched in decades, and that goes back to the surged inflation and the hiked interest rate that both eventually affected the market sentiment negatively.
.%Retail sales volumes dropped to 1.9% while the production sector slipped to 1.5
We can barely find reassurance in the fourth quarter, because of the disturbed market that escorted Liz Truss’s period and the surged energy prices from October, which pushed the consumer confidence to a historical low based on GFK’s figures.
We witnessed a drop in the orders index of the composite PMI survey to 46.8 only in October from 48.6 in September. There is a big probability that the GDP will drop again in the fourth quarter considering the slumped consumer confidence.
The figures had an insignificant effect on GBP as it was reinforced by the release of the US inflation data, which also provoked an edged selloff in the dollar and an acute raise in the US stocks, bolstering hopes that Fed will put an end to the aggressive interest rate hike soon