Investing.com - The public sector net borrowing surplus in the U.K. narrowed more-than-expected in December, official data showed on Wednesday.
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 GBP10.4 billion last month.
Analysts had expected the U.K. public sector net borrowing surplus to narrow to GBP12.3 billion in December from a surplus of GBP15.1 billion in November, whose figure was revised up from a GBP14.8 billion surplus.
Public sector net borrowing excluding temporary effects of financial interventions was GBP12.1 billion, compared to expectations for GBP14.0 billion and down from GBP16.8 billion in November.
For the financial year to date 2013/14, public sector net borrowing excluding temporary effects of financial interventions was GBP83.9 billion. This was GBP11.0 billion higher than the same period in 2012/13, when it was GBP72.9 billion.
Public sector net debt excluding temporary effects of financial interventions was GBP1,254.3 billion at the end of December, equivalent to 75.7% of gross domestic product.
Following the release of the data, the pound spiked higher against the U.S. dollar, with GBP/USD rising 0.39% to trade at 1.6541, compared to 1.6466 ahead of the data.
European stock markets held on to modest gains. London’s FTSE 100 inched up 0.1%, the EURO STOXX 50 tacked on 0.25%, France’s CAC 40 added 0.2%, while Germany's DAX advanced 0.1%.