UK GDP figures ‘quietly encouraging’

<p>Investors may be encouraged by the latest GDP data.</p>

The latest GDP data for the UK could prove to be encouraging for investors after the country was able to avoid slipping into a triple-dip recession.

Data released by the Office for National Statistics showed growth of 0.3 per cent in the first three months of the year, though the economy was revealed to have only expanded by 0.4 per cent in the last year-and-a-half.

Head of investment at Towry Andrew Wilson explained investors and commentators have all been desperate for "black and white answers" over the state of the economy, wanting to know whether it is recovering or not.

He said: "The concept of grey areas and a difficult and long-term recovery, with two steps forward and one step back – and indeed vice versa – has been anathema to both."  

Mr Wilson pointed out that professional investors are now starting to accept the fact that economic growth and interests rates are going to remain lower for longer.

The UK's interests rates have been kept at a record low for the country of 0.5 per cent since March 2009.

Learn about the sterling and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.