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"While I recognize that there may be some difficult times ahead, I am confident that we have the tools necessary to support the economy as we adjust to a new relationship with the EU and take advantage of the opportunities that it offers".
- Philip Hammond, Chancellor of Exchequer
Britain's public sector borrowing increased less than expected in the last quarter, official figures revealed on Wednesday. According to the UK Office for National Statistics, UK Public Sector Net Borrowing climbed to 10.05 billion pounds on a seasonally adjusted basis, following the preceding quarter's 2.43 billion pound fall, which was revised down from the originally reported drop of 1.47 billion pounds. In the meantime, market analysts expected the country's public sector borrowing to rise to 10.30 billion pounds during the reported period. In a report, the Office for National Statistics stated that there were no clear signs of any impact of the British decision to leave the European Union on the public sector finances. Nevertheless, business growth slowed, according to the Bank of England's regular survey of business conditions released on the same day. Although the survey also showed that consumer spending and business sentiment rebounded slightly from the post-Brexit shock.
After the release, the British Pound dropped against the US Dollar, trading at $1.2946, its lowest level since August 16. However, the Sterling held steady against the Euro, trading at 0.8590.