The Pound has strengthened against the Euro and the majority of its most traded peers after economic growth in the UK doubled in the second quarter of the year indicating that the nation’s recovery is on track.
According to the London based Office for National Statistics, GROSS Domestic Product increased by 0.6% from the first quarter where it rose by 0.3%. The rise matched economist predictions. Adding o signs that the economy is set to make further gains was the revelation that the service sector grew by 0.6%, Manufacturing expanded by 0.4% and Construction grew by 0.9%.
The data marks the first back-to-back periods of growth since 2011.
Also contributing was the strengthening of the jobs market and the rise in retail sales. Despite signs of recovery the figures mean that the economy has now recouped almost half of its total 7.2% contraction during the 2008-09 recession, with output remaining 3.3% below its pre-recession peak.
With the improving economic situation speculation will mount over whether the Bank of England will scale back its quantitative easing policy.
There’s been a pretty general gain across the board in activity,” said Peter Dixon, an economist at Commerzbank AG. “I’m not convinced we’ll get more quantitative easing from the BOE. It’s shifting from an activist to passive policy and will be keeping its foot on the accelerator, but maybe with a bit less pressure.”
Thursday’s data will be good news for the government and could bolster Prime Minister David Cameron. With two years to go until the next general election he will be hoping that the improvement will be sustained until then.
Current Pound Sterling (GBP) Exchange Rates
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5361
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1621
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6790
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9189
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6510
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8604
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5955
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5211
(As of 10:00 am GMT)
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