22 Dec 2014
UK public sector finance figures beat expectations – Investec
FXStreet (Barcelona) - The Investec Team notes that the UK public sector finance figures beat market consensus (£15.1bn) with the headline borrowing number coming in at £14.1bn, further highlighting CBI’s report which states that half of UK firms plan to expand their workforce in 2015.
Key Quotes
“A report released by the CBI over the weekend has said half of UK firms plan to expand their workforce next year with permanent jobs taking the lead.”
“The CBI also noted that the recent positive trend seen in the official employment and pay figures is likely to continue.”
“The Office for National Statistics (ONS) said average earnings excluding bonuses were up 1.6% from a year earlier in October and the number of people unemployed was down by 63,000 to 1.96 million in the latest three months. Bank of England member Martin Weale also commented that he too, was confident that employment picture was improving.”
“UK public sector finance figures beat expectations with the headline borrowing number, PSNB ex-banks, coming in at £14.1bn in December, whilst the market consensus had been for a wider £15.1bn deficit and our own forecast for £17.1bn.”
“On a year on year basis that sees borrowing stand 10% down on last November’s level and sees borrowing stand 0.6% down at £75.8bn over the first 8 months of 2014/15. There is clearly work to do if the Chancellor is to meet the OBR’s full year 2014/15 borrowing forecast of £91.3bn.”
“Indeed, such a forecast would require an average undershoot of £1.4bn in the remaining four monthsof the fiscal year. But such an outcome still looks achievable to us, particularly with the help of further back revisions and if we see a step up in some of the revenue components which have been relatively soft over the year to date.”
Key Quotes
“A report released by the CBI over the weekend has said half of UK firms plan to expand their workforce next year with permanent jobs taking the lead.”
“The CBI also noted that the recent positive trend seen in the official employment and pay figures is likely to continue.”
“The Office for National Statistics (ONS) said average earnings excluding bonuses were up 1.6% from a year earlier in October and the number of people unemployed was down by 63,000 to 1.96 million in the latest three months. Bank of England member Martin Weale also commented that he too, was confident that employment picture was improving.”
“UK public sector finance figures beat expectations with the headline borrowing number, PSNB ex-banks, coming in at £14.1bn in December, whilst the market consensus had been for a wider £15.1bn deficit and our own forecast for £17.1bn.”
“On a year on year basis that sees borrowing stand 10% down on last November’s level and sees borrowing stand 0.6% down at £75.8bn over the first 8 months of 2014/15. There is clearly work to do if the Chancellor is to meet the OBR’s full year 2014/15 borrowing forecast of £91.3bn.”
“Indeed, such a forecast would require an average undershoot of £1.4bn in the remaining four monthsof the fiscal year. But such an outcome still looks achievable to us, particularly with the help of further back revisions and if we see a step up in some of the revenue components which have been relatively soft over the year to date.”