MNI 5 Things: UK GDP Picks Up In July, Questions On Longevity

By Laurie Laird, Jamie Satchi and Jai Lakhani

     LONDON (MNI) - The following are the key points from the UK monthly GDP and

trade data published Monday by the Office for National Statistics.

     - GDP for the month of July rose by 0.6% on a 3m/3m basis, the

joint-highest since August 2017. However, the strong performance was powered by

forces that may not be sustainable in months to come.

     -The 0.6% 3m/3m rise in services was driven by another strong month in the

motor trade. However, a national statistics official noted that motor trade has

been volatile over the past six months, prompting an examination of the

respective seasonal factors.

     -Construction jumped 3.3% in July, the fastest 3m/3m growth rate since

February 2017. This was led by predominantly repair and maintenance, however,

and the trend in new orders remains weak and raises questions over whether the

rebound in activity has legs.

     -Industrial production was lifted by a jump in mining and quarrying,

masking continuing weakness in the manufacturing sector. Manufacturing

registered a negative reading for the fifth consecutive month on a 3m/3m basis.

     -The monthly trade deficit narrowed to stg 111mn, the lowest since

February, while the price-adjusted Q2 deficit was revised to stg5.7 bn from

stg7.2bn. However, much of the improvement in the trade deficit stems from a

sluggish growth in imports which rose by just 0.4% in July after a 0.3% fall in

June m/m.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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