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Economics

  • Bank of England warned to be wary of public sector pay deals

    August 23, 2024

    "The big risk is that by setting a benchmark for private sector firms, these pay deals prevent wage growth and services inflation from falling much further," Ashley Webb, UK economist at Capital Economics said.

  • UK economy still Europe’s ‘bright spot’ after latest PMI surveys

    August 23, 2024

    The latest 'flash' purchasing managers' index (PMIs), released yesterday by S&P, showed that the UK maintained its advantage over rivals on the continent in August.

  • Consumer confidence unchanged in August despite worsening outlook

    August 23, 2024

    Consumer confidence remained unchanged in August, a closely watched survey suggested, despite a deterioration in households’ expectations for the broader economy. GfK’s overall consumer confidence index remained at -13 with an improving picture on the personal finance side helping to offset worsening confidence in the economy as a whole. This meant overall consumer confidence remained [...]

  • Growth set to continue as confidence in the economy builds

    August 22, 2024

    A closely watched survey suggests that the UK will continue growing at a robust pace in the second half of the year as confidence in the economy continues to build. S&P’s ‘flash’ purchasing managers’s index (PMI) accelerated to 53.4 in August, up from 52.8 last month and ahead of the 52.9 expected by economists. PMIs, [...]

  • Federal Reserve: September rate cut ‘confirmed’ after latest releases

    August 22, 2024

    A September rate cut looks nailed on after minutes from the US Federal Reserve’s last meeting, released last night, showed many rate-setters had considered a cut in July. Several members at the Fed’s last meeting thought there was a “plausible case” for cutting rates by 25 basis points given the progress on inflation and increases [...]

  • Public wary of tax rises as economists warn on ‘disappointing’ fiscal progress

    August 21, 2024

    Although the public are opposed to tax rises in general, there are a couple of taxes which could go up with popular support. Perhaps unsurprisingly, these are taxes which most people do not pay.

  • Rachel Reeves facing ‘tough choices’ after latest UK borrowing figures

    August 21, 2024

    Already this financial year the government has borrowed £4.7bn more than predicted by the Office for Budget Responsibility (OBR) back in March.

  • Government borrowing exceeds estimates as public sector spending jumps

    August 21, 2024

    Monthly borrowing figures will be closely watched over the coming months for clues about how much Labour will raise taxes in October's Budget.

  • Pound edges above $1.30 as Fed expected to cut rates in September

    August 20, 2024

    The pound has not traded above $1.30 on a sustained basis since mid-2022.

  • JP Morgan nudges up UK growth forecasts after latest GDP figures

    August 20, 2024

    JP Morgan bumped up their growth forecasts for the UK economy in the third quarter of this year following last week’s GDP figures. The investment bank now expects the economy to grow 0.4 per cent between July and September, up from a previous estimate of 0.3 per cent. This equates to an annualised growth rate [...]

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