Tuesday, 29 September 2009

DATA SNAP: UK 2Q Current Account Deficit Widens Sharply

Tue, Sep 29 2009, 08:33 GMT
http://www.djnewswires.com/eu

DATA SNAP: UK 2Q Current Account Deficit Widens Sharply

By Joe Parkinson and Nicholas Winning

OF DOW JONES NEWSWIRES

LONDON (Dow Jones)--The U.K.'s current account deficit widened in the second quarter to its largest level for nearly two years, as investment income narrowed and trade in services weakened, data from the Office for National Statistics showed Tuesday.

The current account deficit for the April-to-June period totaled GBP11.4 billion, compared with a revised deficit of GBP4.1 billion in the first three months of the year.

The first-quarter deficit was originally reported as GBP8.5 billion.

The deficit was larger than the market consensus estimate of a GBP8.0 billion deficit from a Dow Jones Newswires survey of economists last week.

As a share of economic output, the deficit rose to 3.3% of gross domestic product from a downwardly revised 1.2% in the first quarter.

The surplus on investment income shrank to GBP1.4 billion from an upwardly revised GBP7.0 billion in the first quarter, while the deficit on the trade in goods fell to GBP19.9 billion from GBP20.8 billion.

However, the surplus on the trade in services fell to GBP11.3 billion from GBP13.4 billion.

Web site: www.ons.gov.uk

-By Joe Parkinson and Nicholas Winning, Dow Jones Newswires; +44 207 842 9291; joe.parkinson@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=EcD%2BzY6KbOZIxjF%2FqGjJDw%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

September 29, 2009 04:33 ET (08:33 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE: Spain Sep Flash HCPI -1% On Year Vs -0.8% In Aug


UPDATE: Spain Sep Flash HCPI -1% On Year Vs -0.8% In Aug

(Adds analyst comment.)


By Jonathan House
Of DOW JONES NEWSWIRES


MADRID (Dow Jones)--The pace of decline of Spanish consumer prices accelerated again in September, preliminary data from Spain's National Statistics Institute showed Tuesday.

In a statement, the INE said Spain's European Union-harmonized consumer price index fell 1% on the year earlier in September after falling 0.8% on the year in August.

A Dow Jones Newswires survey of five analysts had forecast an 0.8% annual decline in September.

BNP Paribas said in a research note that the fall was more than expected and the weaker data was a surprise.

However, BNP said the downward tick in September should be temporary, noting that strong food and energy price base effects should help push overall inflation higher in the coming months. Core inflation, on the other hand, should continue to move lower as Spain is going through a price adjustment to regain competitiveness, BNP said.

In March, Spain became the first country in the euro zone to report an annual decline in consumer prices during the global economic recession. Weak economic conditions continued to hurt domestic consumption amid rising unemployment during recent months.

Inflation has eased sharply across the euro-zone trading area, allowing the European Central Bank to slash interest rates to support the economy.

-By Jonathan House and Jason Sinclair, Dow Jones Newswires; +34-91-3958121; jonathan.house@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=EcD%2BzY6KbOZIxjF%2FqGjJDw%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

September 29, 2009 04:35 ET (08:35 GMT)


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