On Wednesday the pound sterling traded higher after an avalanche of data from the U.K.
Sterling was higher against its U.S. counterpart with GBP/USD last trading at 1.5178, up 0.17%.
According to official data, the U.K.’s current account deficit narrowed more than expected in the second quarter.
The U.K.’s National Statistics Office reported that the current account recorded a seasonally adjusted deficit of £16.8 billion in the three months ended June 30, narrowing from a deficit of £24.0 billion in the first quarter, whose figure was revised from a deficit of £26.5 billion. Analysts had expected the current account deficit to narrow to £22.3 billion in the second quarter.
At current market prices, the deficit equated to 3.6% of gross domestic product - down from 5.2% in the first quarter.
The narrowing of the current account deficit was mainly due to a narrowing in the deficit on the trade account and a small narrowing in the deficit on the primary income account, slightly offset by a small widening in the deficit on the secondary income account.
Separate data showed that the U.K. index of services rose last month.
The U.K. Index of Services rose to 0.8%, from 0.7% in the preceding month, National Statistics said. Analysts had expected U.K. Index of Services to rise 0.8% last month.
Meanwhile, the country's gross domestic product rose at a seasonally adjusted rate of 0.7% in the three months ended June 30, meeting forecasts and unchanged from a preliminary estimate. The U.K.’s economy expanded by 0.4% in the preceding quarter.
Year-over-year, U.K. economic growth expanded 2.4% in the second quarter, down from an initial estimate of 2.6%. The U.K. economy grew at an annualized rate of 2.9% in the first quarter.
Total business investment rose by a seasonally adjusted 1.6% in the second quarter, compared to an initial estimate of a gain of 2.9%.
However, business investment in the U.K. fell unexpectedly in the last quarter, another report showed. National Statistics said that U.K. business investment fell to a seasonally adjusted 1.0%, from 2.9% in the preceding quarter.
Economists had expected U.K. business investment to remain unchanged at 2.9% in the last quarter.
