Analyst: The UK economy is becoming more stable.

MHA economic adviser Joe Nellis said that the UK's financial situation is trending towards stability, better than many had previously worried about. Government borrowing in December fell for the third consecutive month to 116 billion, reflecting an increase in tax revenue and some relief in spending pressures. Nellis said, "This provides a more constructive economic environment for the coming year for the market, businesses, and decision-makers." This is good news for government bonds as the lower-than-expected borrowing size makes the market believe that the UK's long-term financial strategy is on the right track. Nellis said, "Although there is no room for complacency, with progress towards 2026, fiscal sustainability may become more manageable."