UK DATA: Dec PSNB-X Stg13.708 bn vs Stg15.912 bn in Dec 2010
Public Sector Net Borrowing rose by more than expected in December
as net debt breached one trillion pounds for the first time ever. PSNB
excluding financial interventions stood at Stg13.708 billion in Dec.
down from Stg15.912 billion in Dec 2010, but above the median forecast
for Stg12.2 billion. There were also some back revisions to the
April-November period which now shows borrowing was Stg1.25 billion
higher than previously published. Headlines will also focus on net debt
which topped Stg1 trillion in Dec compounding the gloom. While the
headline data show a slightly worse picture than economists were
expecting the data do show receipts growth holding up at 5% for the
financial year to date compared with a year earlier, just above the
Office for Budget Responsibility’s forecast for full year growth.