UK public finances continue on their improving path

The UK budget deficit is clearly improving compared to the previous fiscal year. In the four months to July, spending was flat compared to the same period a year earlier whereas revenues were up 4.4%. As always, there are caveats about the quality of the data at this stage of the fiscal year but there is undeniably a genuine improvement taking place. 

"We project that the improvement will have continued in August, albeit at a slightly slower pace", says Societe Generale.

The PSNBex should move from £-1.3bn in July (always a surplus month because it is a key tax-paying period) to £9.2bn in August, a £1.2bn reduction on the deficit a year earlier.