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UK public sector borrow hits third-highest June on record
The UK spent more than it earned in taxes and other income in June 2023, resulting in borrowings of £18.5bn.
Although this was a slight improvement of £0.4 billion compared to June 2022, it marked the third-highest June borrowing since records began in 1993, following the peaks in June 2020 and 2022.
The increase in central government tax receipts and a significant reduction in debt interest payments from the previous year were partially offset by higher costs driven by inflation and the escalating cost of living. These expenses included energy support schemes introduced in October 2022 and increased benefit payments.
Public sector net borrowing (excluding public sector banks) was £18.5 billion.This is £0.4 billion less than in June 2022 and the third-highest June borrowing since monthly records began in 1993.
➡️ https://t.co/KpXBo6WdEW pic.twitter.com/UiFf36nbyW
— Office for National Statistics (ONS) (@ONS) July 21, 2023
As of the end of June 2023, public sector net debt stood at £2.6tn, representing around 100.8% of the UK's annual gross domestic product (GDP), a level not seen since the early 1960s.
Blue-chip index seeks out bullish week
London’s FTSE 100 index could be set for the best week in months depending on how today’s session pans out.
As it stands, the blue-chip index is around 2.8% higher since Monday's open, with futures traders expecting Friday to kick off pretty flat.
But with miners and housebuilders on a bit of a rip this week, further upside could be in store.
This morning’s solid retail sales figures could also provide some tailwinds.
Forecasters have consistently undershot the level of UK consumer confidence, and once again retail sales data beat market expectations, coming in at 0.7% month-on-month growth compared to the 0.2% forecasted.
That’s the macroeconomic calendar basically done for the day; we’ll see that markets react when trading commences at 8am.