US service sector growth edges down to two-year low – Institute for Supply Management March 3, 2016 The US services and construction sectors grew at a slower rate February, according to survey data released today. The Institute for Supply Management's non-manufacturing edged down to a score of 53.4 in February from 53.5. Figures above 50 indicate growth with February's figure implying slightly lower growth than January. While most sectors reported growth, the mining, arts, retail and [...]
Brazil’s economy shrinks 3.8 per cent in 2015 March 3, 2016 Brazil's economy contracted by 3.8 per cent in 2015 compared with the year before, according to data released today by the country's statistical office IBGE. Industrial output plummeted by 6.2 per cent while services declined 2.7 per cent. On the expenditure side, a separate way of measuring GDP, investment sank by 14.1 per cent while household consumption dropped [...]
Lending to small businesses drops as banks increase borrowing under funding for lending scheme March 3, 2016 Bank lending to smaller businesses fell at the end of last year. Only £599bn was lent to smaller businesses in the final three months of 2015 from £755bn in the three months to September, according to data released by the Bank of England this morning. However, banks borrowed £6.3bn from the Bank of England of cheap loans over the [...]
Eurozone recovery stalls as survey shows economy flirting with stagnation – Markit PMI March 3, 2016 The Eurozone economy is flirting with stagnation, with new survey data showing the currency-bloc's recent weak recovery could be coming to an end. Markit's purchasing managers index fell to a score of 53 in February, indicating the slowest growth for 13 months. Slowdowns were recorded in all of the Eurozone's big four, with growth dropping in Germany, [...]
Markit PMI: Service sector meltdown as growth falls to lowest in three years on Brexit fears March 3, 2016 The UK's services sector showed the weakest growth in three years in February, new figures have shown. The purchasing managers' index for the UK's dominant sector fell to 52.7 in February, down from 55.6 in January, a report by Markit showed. Any figure above 50 denotes growth. Analysts had expected the figure to dip slightly, to 55.1 – [...]
Seven years of quantitative easing and 0.5 per cent interest rates by the Bank of England: Who are the winners and losers? March 3, 2016 This Saturday will mark seven years since the Bank of England enacted its historic quantitative easing programme, and cut the UK’s main interest rate to 0.5 per cent, in a bid to save it from the financial crisis which was then tearing across the globe. Just like any other policy, it has thrown up winners and losers. Investors who [...]
Now Halifax says UK house prices dropped last month – but rose almost 10 per cent in the year to February March 3, 2016 It was a day of two house price indices today, and while Nationwide was insistent that house price growth was flat between January and February, figures from Halifax have shown prices fell by1.4 per cent. But Halifax's house price index, released today, also showed prices rose 9.7 per cent from last February – and were up [...]
Government must adopt a radical new post-crisis approach to achieve full employment, focusing on making sure people do not leave the workforce in the first place, says Resolution Foundation report March 3, 2016 A radical new post-crisis approach is needed if government wants to achieve its goal of full employment, a report released today has found. According to the study by the Resolution Foundation, which is based on a nine-month investigation, government should be focusing on labour market participation and bringing those who are currently classed as economically inactive [...]
Parents and grandparents spent £18bn supporting their adult children last year, with almost half of those in London saying their kids are relying on their contributions March 2, 2016 Parents who were secretly hoping the financial burden would ease once their little darlings reached 18 are probably feeling a little hard done by, as UK parents and grandparents shelled out £18bn on their adult children and grandchildren last year. According to research released today by the Post Office Money, nearly one in five (18 per [...]
Bank of England’s Jon Cunliffe says housing market risks are rising March 2, 2016 Risks in the housing market are rising, a Bank of England official warned today. However, deputy governor Sir Jon Cunliffe added that they were not as high as in 2014 when the Bank took action to cool the market. “The markets now coming back again, so maybe some of those risks are becoming a little [...]