The UK GDP breakdown is weaker than expected. Of note is the weakness in consumption given the strength of retail sales during this period.
However, I’m focusing on the business investment which has fallen for the second quarter in a row.
This is consistent with the evidence we have been seeing that business investment could slow as a result of election uncertainty.
Overseas business investment in the UK has been a major supportive factor for GBP over the past couple of years, hence the signs of slowing could prove to be a longer term negative factor for GBP.