In the UK, M4 money supply slowed again more than expected in August. Accord-ing to the preliminary figure, M4 money supply slowed from a revised 14.4% Y/Y to 12.6% Y/Y, while the consensus was looking for a figure of 13.8% Y/Y. In August 2009, the public sector showed a deficit on the current budget of £12.8 billion, compared with a surplus of £7.7B in August 2008. An alternative measure is public sector net borrowing, which takes account of capital investment. Net borrowing was £16.1B, compared with £9.9B last year. Income tax receipts fell by 12.7% Y/Y, while VAT income dropped by 16.2% Y/Y. The data indicate that public finances are hit hard due to low tax revenues and increased government spending caused by rising unemployment, but the August data were not as worse as expected.