Investing.com – The U.K. current account deficit narrowed unexpectedly in the second quarter, official data showed on Tuesday.
In a report, the U.K.’s National Statistics Office said that the U.K. current account recorded a seasonally adjusted deficit of GBP2.0 billion in the second quarter, narrowing from a deficit of GBP4.1 billion in the preceding quarter, whose figure was revised from a deficit of GBP9.4 billion.
Economists had expected the current account deficit to widen to GBP9.9 billion.
The total trade deficit widened to GBP6.8 billion in the second quarter from GBP5.8 billion the previous quarter.
The current account deficit narrowed as the income surplus increased by GBP2.2 billion to GBP9.6 billion. However, this was partly offset as the trade deficit increased by GBP0.9 billion to GBP6.8 billion.
The current account balance equates to minus 0.5% of GDP at current market prices in the second quarter of 2011, compared with minus 1.1% in the previous quarter.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.11% to trade at 1.5980.
Meanwhile, European stock markets were mixed after the open. The FTSE 100 eased up 0.1%, the EURO STOXX 50 slumped 0.4%, France’s CAC 40 fell 0.5%, while Germany's DAX shed 0.4%.
In a report, the U.K.’s National Statistics Office said that the U.K. current account recorded a seasonally adjusted deficit of GBP2.0 billion in the second quarter, narrowing from a deficit of GBP4.1 billion in the preceding quarter, whose figure was revised from a deficit of GBP9.4 billion.
Economists had expected the current account deficit to widen to GBP9.9 billion.
The total trade deficit widened to GBP6.8 billion in the second quarter from GBP5.8 billion the previous quarter.
The current account deficit narrowed as the income surplus increased by GBP2.2 billion to GBP9.6 billion. However, this was partly offset as the trade deficit increased by GBP0.9 billion to GBP6.8 billion.
The current account balance equates to minus 0.5% of GDP at current market prices in the second quarter of 2011, compared with minus 1.1% in the previous quarter.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.11% to trade at 1.5980.
Meanwhile, European stock markets were mixed after the open. The FTSE 100 eased up 0.1%, the EURO STOXX 50 slumped 0.4%, France’s CAC 40 fell 0.5%, while Germany's DAX shed 0.4%.