020 7898 0500The UK’s unemployment rate was at its lowest mark for 42 years in July to September 2017 and it had been expected to remain at this level for the fourth quarter of 2017. However, figures released yesterday showed that it actually increased by 46,000 to 4.4%. It isn’t anything to get too worried about just yet, but it still rattled the markets a little and sterling weakened as a result.
We also learned that the public sector recorded a net borrowing surplus of £11.62 billion in January 2018, which was lower than the £13.2 billion surplus a year ago. If we discount state-owned banks, public sector net borrowing was in surplus by £10 billion which is the second-lowest January reading on record. So, a bit of a mixed day all told (although let’s not forget that both main releases are from different points in time).
Today’s key release is the GDP growth rate for the fourth quarter of 2017. As the second estimate, the figures should give us a more accurate indication of how the UK economy performed towards the end of last year. It is forecast to come in at 1.5% from 1.7% the quarter before which would be the weakest pace of expansion since the first quarter of 2013.
