- GBP -24.3 bln prev rev down from -23.1 bln
Increasing current account deficit not helping the pound’s cause either
GBPUSD 1.5562 having tested 1.5550 support area
Says the Office for National Statistics:
- The United Kingdom’s (UK) current account deficit was £27.0 billion in Quarter 3 2014, up from a revised deficit of £24.3 billion in Quarter 2 2014. The deficit in Quarter 3 2014 equated to 6.0% of GDP at current market prices, up from 5.5% in Quarter 2 2014.
- The widening of the current account deficit was mainly due to a widening in the deficit on the primary income account from £8.2 billion in Quarter 2 2014 to £12.6 billion in Quarter 3 2014. This reflects receipts from foreign direct investment falling and payments to foreign direct investors rising. This was slightly offset by a narrowing in the deficit on the secondary income account.
- The trade deficit narrowed to £9.0 billion in Quarter 3 2014, from £9.2 billion in Quarter 2 2014, mainly due to a larger surplus on trade in services. The surplus on trade in services equates to 5.1% of GDP which is the largest proportion since records began in 1955. This was partially offset by a widening in the trade in goods deficit.
- The financial account recorded net inward investment of £27.4 billion during Quarter 3 2014.
- The international investment position recorded UK net liabilities of £450.7 billion at the end of Quarter 3 2014
Full release from the ONS here
UK Current Account QQ
