The UK Economy Makes a 'Comeback', What Happens to the Pound?

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The UK economy made a comeback in April as several sectors again showed expansion.


Gross domestic product (GDP) reportedly grew by 0.2% after contracting 0.3% in March, according to Office for National Statistics (ONS) data.


This figure makes the UK economy 0.3% bigger than before the coronavirus pandemic hit in 2020.


Expansion in the services sector of 0.3% was the main contributor to growth after experiencing a fall of 0.5% in March.



It was led by increases in wholesale and retail trade, motor vehicle repair, and information and communication.


While output in consumer services jumped 1%, recovering from a previous 0.8% fall, where the largest contribution was driven by food and beverage service activities.


It was the second UK economic data showing better-than-expected readings this week after the jobs report published on Tuesday.


Initial currency reactions following the data showed the pound did not react significantly but remained trading firmly at a five-week high against the greenback.

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