UK GDP grew 0.1% in May, aligning with expectations, while industrial production fell 0.5%, missing estimates.
The Euro remains steady against the British Pound, trading near 0.8475 in early European trading. UK economic data showed a 0.1% month-over-month GDP expansion in May, matching forecasts but reversing April’s 0.1% decline.
Industrial production contracted by 0.5% in May, worse than the anticipated 0.1% drop, while manufacturing output rose 0.1%, outperforming the -0.2% consensus. Despite mixed data, markets are pricing in a Bank of England rate hike by November, driven by inflation concerns tied to rising oil prices.
ECB President Christine Lagarde reiterated a data-dependent approach, with no commitment to further hikes after June’s move. Money markets reflect expectations for a second BoE hike by April 2027, according to Reuters.