Events that marked the week:
Wednesday's session brought Public Sector Net Borrowing figures from the UK. Public sector net borrowing (excluding public sector banks) decreased by £7.7 billion to £59.5 billion in the current financial year-to-date (April to November 2016), compared with the same period in 2015. Public sector net borrowing (excluding public sector banks) decreased by £0.6 billion to £12.6 billion in November 2016, compared with November 2015.
From the UK, on Thursday, Consumer Confidence figures were published.
GfK’s long-running Consumer Confidence Index has increased by one point this month to -7. Two of the five measures saw increases in December with the remaining three measures decreasing. Joe Staton, Head of Market Dynamics at GfK, says: “The past 12 months were a really turbulent year for confidence in the UK as consumers reacted to the dramatic economic and political turmoil of 2016. After a positive start to the year [January 2016, +4] the index plunged rapidly in post-Brexit Britain [July 2016, -12] with the recovery to September then evaporating by year end to limp home at -7 for December.“
Friday was marked by UK Current Account figures. The UK’s current account deficit was £25.5 billion in Quarter 3 (July to September) 2016, up from a revised deficit of £22.1 billion in Quarter 2 (April to June) 2016. The deficit in Quarter 3 2016 equated to 5.2% of gross domestic product (GDP) at current market prices, up from 4.6% in Quarter 2 2016. The widening in the current account deficit was mainly due to a widening in the deficits on total trade and secondary income, partially offset by a narrowing in the primary income deficit.
Searate report showed that UK GDP in volume terms was estimated to have increased by 0.6% in Quarter 3 2016, revised up 0.1 percentage points from the second estimate of GDP published on 26 November 2016, due to upward revisions from the output of the business services and finance industries. This is the 15th consecutive quarter of positive growth since Quarter 1 (Jan to Mar) 2013.
This week markets will be looking at:
BBA Mortgage Approvals (Wednesday 10:30)
