GDP Edges Higher in Q2 Courtesy of Services.>

UK DATA: GDP Edges Higher in Q2 Courtesy of Services Sector 

-UK Q2 GDP First Estimate +0.4% q/q; +1.4% y/y

-UK Q2 Household Consumption +0.3% q/q; +1.1% y/y

-UK Q2 Business Investment +0.5% q/q; +0.8% y/y

-UK Q2 Net Trade Contributes -0.8pp to Q2 GDP

-UK Jun Total Trade Deficit Stg1.861bn vs Stg3.141bn May

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UK GDP rose by 0.4% q/q in Q2 2018, in line with market 

expectations, up from Q1's 0.2%. On an output basis, growth was 

dominated by the services sector which grew 0.5% q/q -- the best q/q 

result since Q4 2016. On an expenditure basis, the main contributor to 

growth was gross capital formation, responsible for 0.9pp of the q/q GDP 

rise while household spending added a further 0.2pp. Offsetting this, 

net trade subtracted 0.8pp from q/q growth -- with a 3.6% q/q fall in 

exports markedly higher than the 0.8 q/q fall in imports.