- FTSE 100 set to open slightly lower
- UK Q2 GDP revised upwards, current account deficit falls
- PM and Chancellor to meet OBR
7.25am: UK current account deficit falls
The underlying UK current account deficit excluding precious metals reduced to £32.5bn or 5.3 % of gross domestic product (GDP) in quarter two (Apr to June), a change of £4.4bn from the previous quarter.
Figures from the Office for National Statistics showed that the UK current account deficit, when trade in precious metals is included, reduced to £33.8bn, or 5.5% of GDP in the quarter.
The ONS also said figures for the underlying current account deficit had been revised downwards to show a deficit of £37.0 billion (6.1% of GDP), from an initial estimate of £44.2 billion (7.1% of GDP).
The revision is primarily because of investment income earnings from abroad (credits) being higher than previously estimated.
7.15am: UK Q2 GDP revised upwards
Some better news.
UK GDP for quarter two of this year has been revised upwards to show growth of 0.2% from the previous estimate of a contraction of 0.1% suggesting the UK may not be in recession.
Figures from the Office for National Statistics showed that services output is estimated to have increased by 0.2% in quarter two, reflecting an easing in information and communication, and professional, scientific and technical activities output although there was also continued weakness in the wholesale and retail trade, and health industries.
We’ve published revised GDP data today including improved methods and sources https://t.co/7BFolSeRYrGDP has been revised up from -0.1% to +0.2% in Q2.
However, the overall size of the economy is smaller than previously estimated, 0.2% below its pre #COVID19 pandemic level. pic.twitter.com/FjJVPEBNGb
— Office for National Statistics (ONS) (@ONS) September 30, 2022
The latest update also contained revisions for growth in 2020 and 2021.
The ONS said estimates show that UK GDP contracted by a downwardly revised 11.0% in 2020, reflecting the effects of coronavirus (COVID-19) restrictions, while UK GDP is now estimated to have expanded by an upwardly revised 7.5% in 2021.
Overall, the level of real GDP is now estimated to be 0.2% below where it was pre-coronavirus at quarter four (Oct to Dec) 2019, downwardly revised from previous estimates of 0.6% above.
7.00am: FTSE 100 set to open slightly lower
FTSE 100 is expected to open slightly lower on Friday after another day of drama on the financial markets yesterday.
Spread betting companies are calling the lead index down by around 18 points.
UK gross domestic product figures for the second quarter are due this morning with a 0.1% decline forecast whilst Nationwide's house price data for September is also due.
UK Prime Minister Liz Truss and Chancellor Kwasi Kwarteng will meet with the head of the Office of Budget Responsibility on Friday, in the latest effort by the pair to reassure markets and voters that the economic turmoil of recent days is under control.
In the US, markets headed downwards once again as investors continued to fret that the Federal Reserve's aggressive fight against inflation could hobble the US economy and also worried about a rout in global currency and debt markets.
By the close the Dow Jones Industrial Average was 458 points, or 1.54% lower, at 29,226, the S&P 500 eased 79 points, or 2.11%, to 3,640 and the tech-heavy Nasdaq Composite slid 314 points, or 2.84% to 10,738.