020 7898 0500There was some good news for the UK yesterday, as the UK’s public sector net borrowing figures came in better than expected, by showing a budget surplus of £2 billion. The figure was almost twice as much as economists had expected.
The pound did make some gains against the dollar, but this was largely down to Trump’s interest rate comments and the subsequent dollar weakness rather than sterling strength. The sad truth is that Brexit uncertainty continues to weigh heavily on the pound and will no doubt carry on doing so until we have clarity on whether the UK can agree a deal with the EU.
There was also some disappointing news for the UK economy, as factory orders growth fell to a three-month low in August. The Confederation of British Industry’s industrial trends survey showed a balance of +7 which was down from +11 in July and below the +9 the markets had expected.
There are no economic data releases from the UK on today’s schedule, with the main focus being on the Federal Open Market Committee meeting minutes.
