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UK Final Q4 GDP revised higher to 3.00% year-on-year

FXStreet (Mumbai) - The UK Office for National Statistics (ONS) revised the Q4 GDP data higher to 3.00% year-on-year from the previous estimate of 2.8%. The ONS was expected to report the GDP at 2.7%.

Meanwhile, quarter-on-quarter Q4 GDP was confirmed at 0.6%, in line with the previous estimate. The economy grew 2.8 percent in 2014 and is now 3.7 percent larger than its previous peak reached in early 2008.

Household spending rose 0.6 in the fourth quarter and exports jumped 4.6 percent, the most since 2013. There were upward revisions to services and production in the fourth quarter. In the third quarter, growth was revised down to 0.6% from 0.7%.

Current account deficit narrowed

A separate report from the ONS showed the current-account deficit narrowed to GBP 25.3 billion in the fourth quarter. The improvement was largely due to trade deficit narrowing to GBP 6 billion from GBP 10.2 billion in the third quarter.

EUR/GBP: Pound spikes to fresh 6-day highs above 0.7260

The pound continued to hammer the shared currency in the European morning, dragging EUR/GBP to fresh six days lows after final estimate of UK Q4 2014 GDP surprised markets on the upside boosting sterling.
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