Investing.com - The U.K. economy grew in line with preliminary estimates in the last three months of the 2015, in line with expectations, although business investment registered its largest drop since the first quarter of 2014, data showed on Thursday.
In a report, the Office for National Statistics (ONS) said gross domestic product expanded by a seasonally adjusted 0.5% in the first quarter, unchanged from an initial estimate in line with expectations. The U.K.’s economy grew by 0.4% in the preceding quarter.
Year-over-year, U.K. economic growth grew 1.9% in the three months ended December 31, unchanged from a preliminary reading and also in line with forecasts. The U.K. economy expanded at an annualized rate of 2.1% in the third quarter of 2015.
Meanwhile, total business investment fell by a seasonally adjusted 2.1% in the fourth quarter, missing estimates for a 0.9% increase. ONS explained that the decline was due to the disposal of assets in the transport equipment sector.
The data showed that fourth quarter private consumption was revised down to a 0.7% gain from a preliminary estimate of 0.9%, while government spending rose 0.5% in the fourth quarter, revised down from an initial forecast of a 0.6% increase.
Additionally, the index of services in the U.K. inched up 0.7% in the fourth quarter, in line with consensus and after rising 0.6% in the third quarter. The sector had expanded steadily for three years.
GBP/USD was trading at 1.3921 from around 1.3920 ahead of the release of the data, while EUR/GBP was at 0.7910 from 0.7906 earlier.
Furthermore, European stock markets remained broadly higher. London’s FTSE 100 gained 1.80%, the EURO STOXX 50 rose 1.52%, France's CAC 40 advanced 1.53%, while Germany's DAX traded up 0.8%.