U.K. 2Q GDP Revised Higher Amid an Increase in Capital Outflows
The final GDP reading for the U.K. was revised higher to 1.5% from a preliminary reading of 1.4%, which suggests that the economy may avoid a recession in the third quarter. However, falling home prices paired with tightening credit conditions have clearly taken a toll on Europe’s second largest economy, and conditions have gotten worse as Brandford & Bingley were nationalized by the U.K. government over the weekend. Meanwhile, the current account deficit widened to -11.0B from a revised reading of -5.5B in the first quarter, signaling that capital outflows have increased as growth prospects weaken.
- U.K. 2Q GDP Revised Higher, Pound-Dollar (GBPUSD) Breaks Above 1.8050
- U.K. GDP Improves, Helping to Ease Recessionary Fears
- Euro-Zone Unemployment Rises to 7.5%, Will The Economy Slip Into a Recession?
- Euro-Zone Unemployment Rises to 7.5%, Euro-Dollar (EURUSD) Bounces Higher
- U.K. Trade Deficit Widens as Global Trade Falters