020 7898 0500Well it was about time that the UK economy had some positive news and on Friday it came in the form of the public sector net borrowing figures. They were shown to be £5.9 billion for September, which is the lowest reading for a September since before the financial crisis. It gives Chancellor Philip Hammond a bit of breathing space as he prepares for the next budget. Not much breathing space, but some and he will certainly be happy with the data.
Meanwhile, there appeared to be a bit of a breakthrough in Brexit negotiations as the European Council President, Donald Tusk, said that reports of a deadlock between the EU and UK had been exaggerated and there had been some progress. However, French President Emmanuel Macron had to go and spoil it by saying ‘a lot still needs to be done’ and then accused Brexiters of ‘bluffing’ on a no-deal scenario. No matter – sterling still strengthened against the euro and US dollar following the news (and the borrowing figures).
It is relatively quiet today, but tomorrow sees the GDP growth rate and mortgage approvals. Mortgage approvals are expected to increase slightly from 41,800 to 42,200, which GDP growth is expected to remain at 0.3%.
