UK borrowing rose in August to reach Â£ 20.5 billion after the July fall, well above consensus forecast of Â£ 15.6 billion.
The figure is the second highest on record in August, according to the Office for National Statistics, after peaking at Â£ 26 billion for the same month a year ago. The difference was mostly offset by a Â£ 5.3bn jump in central government revenue, with spending just Â£ 1bn less than a year ago.
Public sector net debt reached Â£ 2.2 trillion at the end of August, or about 97.6% of GDP, the highest ratio since 98.3% in 1963.
5 things to start your day
1) The Chinese real estate crisis is shaking the world markets: Stock markets fell around the world on Monday amid growing fears that a real estate crisis in China could jeopardize the global recovery of Covid.
2) British Airways owner soars as the US opens the door to Britain and Europe: The end of the travel ban is a major boost for IAG, which relies on transatlantic flights for a significant portion of its revenue.
3) National Express aims to acquire Stagecoach: Coach operator FTSE 250 has discussed a bold takeover of Perth-based Stagecoach, sources told Bloomberg.
4) Pimlico Plumbers sale brings Charlie Mullins over Â£ 100million: Pimlico was reportedly sold for between Â£ 125million and Â£ 145million. Mr. Mullins owns 90% of the company he founded in 1979, with the remainder owned by his son Scott.
5) Poland defies a fine of â¬ 500,000 per day in Brussels to keep a coal mine open: The European Court of Justice ordered Poland to pay the heavy fine on Monday after operations continued at the Turow open-pit lignite mine in the southwest of the country, despite an injunction.
What happened during the night
Stocks fluctuated in Asia on Tuesday, with investors nervously keeping an eye on struggling real estate giant China Evergrande after fears about its possible collapse sparked a rout in global markets.
Hong Kong-listed real estate companies, which suffered the brunt of the sale on Monday, with more than 10%, managed to make gains in the morning as bargain buyers settled in, but plenty remains. ‘uncertainty.
Hong Kong’s Hang Seng Index, which plunged more than 3% on Monday, edged up 0.2%. Gains were also recorded in Sydney and Singapore. Tokyo lost 2pc while Wellington, Manila and Jakarta also fell.
- Business: Intermediate results: Kingfisher, JTC; Trading Update: Compass Group, Oxford Instruments
- Economy: Public sector borrowing (United Kingdom); housing starts (United States)