FTSE dodges ball as GDP rebounds in May by Investing.com

By Geoffrey Smith

Investing.com – UK stocks dodged on Wednesday, as a series of economic data adds only a few recent impressions to a generalized economic slowdown.

British stocks dodged Wednesday, a series of economic data adding little to the recent impression of a general economic slowdown.

Figures from the Office for National Statistics show that gross domestic product rebounded 0.3% in May after a sharp decline in April. The rebound is mainly due to auto production: the country's car manufacturers have extended their usual annual maintenance periods until April to avoid overproduction in a month which should be the first after the UK's departure. Kingdom of the European Union.

Rob Kent-Smith, head of GDP at the ONS, commented that the rebound in auto production was only "partial". Manufacturing output rose 1.4% in May, after declining 4.2% a month earlier.

The ONS said that GDP could further decline on a quarterly basis unless expansion continues in June. Business surveys for June suggest that this is unlikely, as both SMIs and SMIs remained in contraction, while the only one remained above 50% separating growth and contraction.

"There has been a longer-term slowdown in the often dominant service sector since the summer of 2018," said Kent-Smith.

The services sector was hit hard this week with the loss of thousands of jobs in the country, largely driven by factors other than Brexit.

Deutsche Bank U.K. i

The was down 0.2% at 4:45 am ET (8:45 am), as was the widest. The benchmark also fell by 0.2% as traders reduced their positions ahead of the Federal Reserve Chairman's key testimony at 10:00 am (14:00 ET) (14:00 GMT).

Economists remain cautious about the UK's outlook for the next six months.

"Growth (any growth) will continue to be choppy for the rest of the year, with stocks likely to be replenished before a possible exit without an agreement on October 31st in the EU, prior to the start of the year. to be unwound because the tin can still be floated. Said ING Chief International Economist, James Knightley, via Twitter. "Bad news for business (and) consumer confidence."

In a televised debate on Tuesday night, the two men vying to become the next British prime minister had both claimed to be "confident" to leave the EU on October 31, although bookies favorite Boris Johnson , which has affected a rival Jeremy Hunt, refused to categorically say whether he would resign as prime minister if this did not happen – implicitly giving him room to postpone the Brexit again.