UK public sector net borrowing came in at an eye watering £27.4 billion this morning. This has been put down to Government support with energy bills. It also creates an interesting view on monetary policies around the globe. The UK is borrowing more, but also looking at fiscal tightening and increased taxation whereas the US is borrowing more, but also spending more. It will be interesting to see which stance works.
Today sees global services and manufacturing purchasing managers indices (PMI) from the Eurozone, the UK and the US. 50 is the median reading. Anything below 50 indicates slowing down and anything above indicates acceleration. All 3 zones are expected to put numbers out just under 50.
Eyes will turn down under later when first New Zealand puts out it's inflation numbers (analysts expecting 7.1% year on year growth) followed by Australia's inflation expected at 7.7% year on year growth.
However for the Pound it might be breakfast tomorrow that sees some action as the ONS puts out it's producer price index where 13.9% year on year growth is expected. The PPI reading on inflation removes volatile items such as food and energy.
Business news concentrates on the potential for many businesses to go under in 2023 as the cost of energy and overall inflation causes the inevitable for some companies.
Today’s Economic Calendar
EUR: 09:00 S&P Global Services and Manufacturing PMI
UK: 09:30 S&P Global Services and Manufacturing PMI
EUR: 09:45 ECB's Christine Lagarde Speech
US: 14:45 S&P Global Services and Manufacturing PMI
NZ: 21:45 Inflation Numbers
AUS: Wednesday 00:30 Inflation Numbers
UK: Wednesday 07:00 PPI Data
As ever we look forward to keeping you in the loop and look out for our next update.
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