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Economics

  • Cautious UK companies begin belt-tightening as business investment stutters in the face of oil price crash and fears of Brexit

    March 31, 2016

    British firms may be battening down the hatches and trimming back on business investment in the face of global turmoil and the Brexit referendum, according to statistics released this morning. Official figures showed that the amount invested by firms into new assets like buildings, machines, equipment, and intellectual property, slipped by two per cent in [...]

  • Party on: Pound bounces as UK GDP growth is revised upwards

    March 31, 2016

    Things aren't as bad as we thought, it turns out – after official figures showed UK GDP rose 0.6 per cent in the fourth quarter of last year, rather than the 0.5 per cent originally thought.  The figures, published by the Office for National Statistics (ONS) this morning, showed growth in December 2015 compared with the same [...]

  • UK house prices: Sales to first-time buyers pause in February despite year-on-year rise

    March 31, 2016

    The number of first-time home buyers rose by seven per cent in the year to February despite a slight drop in activity since the start of the year, new data today shows. First time buyer sales stood at 21,000 last month, which was 6.6 per cent ahead of February 2015’s figure of 19,800, according to Your [...]

  • Brexit uncertainty could be weighing on consumer optimism

    March 31, 2016

    Consumers have become more concerned over the UK’s economic outlook, according to new survey data released this morning. The confidence index produced by market researchers GFK remained at a score of zero in March. It is equal to February’s score of zero which was the lowest since 2014. Yet the index remains high by historical [...]

  • Slowing US oil stocks fail to prop up prices

    March 30, 2016

    Oil prices failed to hold on to gains yesterday after rising on the latest data from the International Energy Agency (IEA), showing US crude inventories rose less than expected over the last week. Brent prices initially jumped to $40.54 a barrel in early afternoon trading but by the evening had dropped to $39.27. US benchmark [...]

  • Uncertainty, sure. Turmoil, probably. But this economist says Brexit might not be a disaster

    March 30, 2016

    Britain will not awaken to a post-apocalyptic nightmare on 24 June if it votes to leave the European Union, a top economist has told City A.M.  Dismissing the notion that Brexit would be a "disaster" for the UK economy, Jean-Michel Six, chief economist for Europe, the Middle East and Africa at Standard & Poor's (S&P), also said [...]

  • London is leading a second post-crisis boom in house prices

    March 30, 2016

    House prices across the country continue to surge. Data published by the Land Registry this morning shows the average UK property price was £190,275 in February, a 6.1 per cent climb on the same month last year. London leads London house price growth continued to outpace the rest of England and Wales. The average price [...]

  • Draghi’s “Big Bazooka” losing steam as Standard & Poor’s slashes Eurozone growth forecasts

    March 30, 2016

    Standard and Poor’s (S&P) has slashed its growth forecasts for the Eurozone, saying that low growth and weak inflation looks set to stalk the continent for the foreseeable future. The ratings agency reckons the Eurozone will expand by a miserly 1.5 per cent this year, down from its previous forecast, made just four months ago, [...]

  • Europe gets the jitters as confidence crumbles in the face of global turmoil

    March 30, 2016

    Confidence in the Eurozone remains on shaky foundations as the EU’s official monitor of economic sentiment crumbled for a third consecutive month, feeding fears of a continent-wide slowdown. Both business and consumer jitters dragged the Economic Sentiment Indicator down from a score of 103.9 in February to 103.0 in March, its lowest level in 13 [...]

  • If you’re a higher earner, you’ll likely only retire on two-thirds of the pensions income you think you will

    March 30, 2016

    Here's a midweek magic trick for you if you're earning over £50,000: Take the amount you think you're going to be raking in every year of your retirement from your private pension, then divide it by three and times it by two. Ta-da! There's the amount you're actually more likely to receive (we didn't say it [...]

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