UK May GDP data meets expectations, while industrial production contracts more than anticipated, limiting sterling movement.
The British Pound showed little reaction after the UK economy grew 0.1% in May, matching consensus forecasts. The expansion followed a 0.1% contraction in April, signaling modest recovery but no significant acceleration in growth.
Industrial production data for May disappointed, contracting 0.5% month-on-month, worse than the 0.1% decline expected. April’s figure was revised upward to 0.2% growth from a flat reading. The mixed data provided limited direction for sterling.
Sterling remained firm against major peers, supported by reports that incoming UK Prime Minister Andy Burnham will appoint Shabana Mahmood as finance minister, a choice viewed favorably by markets for her fiscal conservatism.