UK GDP Surprises with 0.3% MoM Growth in June

The United Kingdom's Gross Domestic Product (GDP) for June came in stronger than expected at 0.3% month-over-month, driven by a strong services sector expansion of 0.4% m/m.

This growth was broad-based across the services sector, with only wholesale trade showing any contraction.

However, the Bank of England (BoE) had already projected quarterly growth of 0.3%, and TD Securities notes that this surprise upside does not signal a fundamental growth story or clear case for rate hikes.