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U.K. public sector net borrowing posts unexpected surplus

Published 05/22/2012, 04:45 AM
GBP/USD
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Investing.com - Public sector net borrowing in the U.K. posted an unexpected surplus in April, boosted by a Royal Mail asset transfer, official data showed on Tuesday.

In a report, the U.K. National Statistics Office said that public sector net borrowing, or the difference in value between public spending and income, posted a surplus of GBP18.8 billion in April, compared to a deficit of GBP14.6 billion in March, whose figure was revised from GBP15.9 billion.

Analysts had expected U.K. public sector net borrowing to post a deficit of GBP5.8 billion in April.

The report showed net borrowing excluding the temporary effects of financial interventions posted a surplus of GBP16.5 billion in April.

Net debt excluding the temporary effects of financial interventions was GBP1006.3 billion, equivalent to 64.8% of GDP.

The ONS said this month's figures include a large one-off transfer to Government of GBP28 billion, as part of the transfer of the Royal Mail Pension Plan.

Following the release of that data, the pound turned lower against the U.S. dollar, with GBP/USD dipping 0.11% to trade at 1.5817.

Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 rose 0.95%, the EURO STOXX 50 gained 0.9%, France’s CAC 40 advanced 0.75%, while Germany's DAX added 0.95%.  

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