Q4 GDP Up Modestly Despite Sharp December...>

UK DATA: Q4 GDP Up Modestly Despite Sharp December Slump  

-UK Q4 GDP First Estimate +0.2% q/q; +1.3% y/y

-UK Q4 Business Investment -1.4% q/q; -3.7% y/y, biggest since Q1 2010

-UK Dec GDP -0.4%, biggest fall since March 2016

-UK Q4 Household Consumption +0.4% q/q; adds 0.27 pp to total growth

-UK Q4 Net Trade Takes 0.12pp Off Q4 GDP; 

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GDP declined by 0.4% m/m in December, its biggest decline since 

March 2016, driving a disappointing Q4 reading of +0.2%, below the MNI 

median of +0.3%. While household consumption registered growth (0.4% 

q/q), business investment was down for the fourth consecutive quarter. 

Car production plunged 4.9% Q/Q, its biggest fall since Q1 2009. As 

noticed in Q3, each quarterly decline in business investment has grown 

in size. Services expanded by 0.4% in Q4, despite a 0.2% fall in 

December, dampened by retail and wholsesale trade. Construction declined 

markedly in December by 2.8%, the largest drop since June 2012. The 

trade gap trade widened to stg10.355 in Q4 from stg9.503 in Q3.