The final data left quarterly GDP growth matching its provisional estimate but earlier amendments saw the annual change lifted from 0.4 percent to 0.6 percent. Quarterly growth at the start of the year now stands at 0.3 percent (previously 0.1 percent) and yearly growth at 0.5 percent (previously 0.2 percent). Total output was 1.8 percent above its pre-Covid mark in the fourth quarter of 2019.

Household spending was up 0.5 percent on the quarter after a 0.7 percent gain while gross fixed capital formation rose 0.8 percent following a 2.5 percent bounce. Within the latter, business investment climbed a very solid 4.1 percent after a 4.0 percent increase. At the same time, government consumption (2.5 percent) easily more than reversed the previous period's fall (1.2 percent) but business inventories (excluding alignment and balancing) subtracted 0.2 percentage points.

Consequently, growth would have been a good deal stronger but for net foreign trade which subtracted a full percentage point as a 0.9 percent drop in exports was compounded by a 2.2 percent increase in imports.

The latest data re-affirm that the UK easily avoided recession in the first half of the year and also show a better balance to growth. In particular, the buoyancy of business investment is reassuring. However, with July GDP contracting some 0.5 percent on the month and the September PMI composite output sliding to a lowly 46.8, a downturn in the current half is a very real possibility. To this end, at minus 30 and minus 18 respectively, the UK's RPI and RPI-P show overall economic activity also still running behind market expectations.

No revisions are expected to the provisional data leaving a 0.2 percent quarterly gain and annual growth of 0.4 percent.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. Since 2018, the first, or provisional, estimate includes the GDP expenditure components as well as data on the main output sectors. These results are updated in the second, and final, report.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market Investors like to see healthy economic growth because robust business activity translates to higher corporate profits. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. These data are readily comparable to other industrialized countries. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

Each financial market reacts differently to GDP data because of their focus. For example, equity market participants cheer healthy economic growth because it improves the corporate profit outlook while weak growth generally means anemic earnings. Equities generally drop on disappointing growth and climb on good growth prospects.

Bond or fixed income markets are contrarians. They prefer weak growth so that there is less of a chance of higher central bank interest rates and inflation. When GDP growth is poor or negative it indicates anemic or negative economic activity. Bond prices will rise and interest rates will fall. When growth is positive and good, interest rates will be higher and bond prices lower.

Currency traders prefer healthy growth and higher interest rates. Both lead to increased demand for a local currency. However, inflationary pressures put pressure on a currency regardless of growth. For example, if the UK reports that the consumer price index has risen more than the Bank of England's 2 percent inflation target, demand for sterling could decline. Similarly, when the Bank of England lowers interest rates, the pound sterling weakens. (Currency traders also watch the interest rate spread between countries.)