UK: Public finances data in focus today – Nomura

Analysts at Nomura suggest that during the UK session public finances data will be the only significant economic release which is likely to garner investors’ attention.

Key Quotes

“Since the start of 2015 the deficit has generally been narrowing relative to the same month a year earlier. Over this period the annual narrowing averaged almost £2bn per month, leading to a notable improvement in the deficit over the past two years (2.4% of GDP in 2016-17, from 5% two years earlier and a peak of around 10% in 2009-10). In June, however, there was a £2bn rise in the deficit versus a year earlier, the largest annual increase for over three years. This was largely due to timing changes in payments to the EU, alongside higher interest payments (related to higher inflation). We expect the deficit to be £1bn in July, around £0.5bn higher than a year earlier.”