UK July PSNBR and PSNCR now out 19 Aug 2016
- +GBP 7.5bln prev revised up from +7.3bln
- PNSB ex banking groups -GBP 1.0bln vs -1.9bln exp vs +8.0bln prev revised up from +7.8bln
- public sector net cash requirement -GBP 2,1bln vs +13.5 bln prev revised down from +14.9 bln
- Corporation tax receipts highest July reading since 2011
Better looking data post-Brexit but not meeting expectations in a month traditionally good for revenues.
Work to be done still and fin min Hammond will have less to give away in the Autumn Statement based on this evidence.
" Due to the volatility of the monthly data, the cumulative financial year-to-date borrowing figures provide a better indication of the progress of the public finances than the individual months.
The data presented in this bulletin presents the latest fiscal position of the public sector as at 31 July 2016 and so includes the first post-EU referendum data.However, estimates for the latest period always contain a substantial forecast element and so any post-referendum impact may not become clear for some time ."
Full report here
GBPUSD still on the back foot at 1.3115 but bids into 1.3100
Public Sector Net Borrowing measures the difference in value between spending and income for public corporations, the central government, and local governments during the previous month. A positive number indicates a budget deficit, while a negative number indicates a surplus.
The public sector consists of central government, local authorities and public corporations. The net cash requirement measures the public sectors need to raise cash trough selling debt or running down its liquid financial assets. The public sector net cash requirement equals the central government net cash requirement (including borrowing from the market for on-lending to local authorities and public corporations) plus local authorities contributions. I.e. their market and overseas borrowing, measured net of their purchases of other public sector debt.