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Economics

  • Unemployment hits post-pandemic high as wage growth slips

    February 17, 2026

    The labour market continued to loosen in the final quarter of last year, official figures show, with wage growth easing and unemployment climbing steadily higher.  The rate of joblessness crept up to 5.2 per cent between October and December, according to the Office for National Statistics (ONS), the highest level since early 2021 and slightly [...]

  • FTSE 100 Live: Unemployment rises; Debenhams’ £35m raise

    February 17, 2026

    Good morning and welcome back to the City AM liveblog. The UK unemployment rate has risen again this morning, with fresh data from the Office for National Statistics (ONS) showing the rate had surged to 5.2 per cent in the three months to December 2025. This was up from 5.1 per cent in the latest [...]

  • Babcock shares surge as Starmer calls for Europe to ‘step up’ on defence

    February 16, 2026

    Shares in Britain’s defence giants rallied on Monday morning as Prime Minister Sir Keir Starmer called for Europe to “step up” on defence spending. Babcock – which plays a key role in the UK’s nuclear submarine fleet as well as naval, land and air operations – surged nearly four per cent in early trading to [...]

  • Gloomy Brits’ sluggish spending set to drag on economic growth

    February 16, 2026

    Brits continued to tighten their pockets in January as economists warned sluggish spend from consumers could trigger a “sustained drag on economic growth“. S&P Global’s latest Consumer Sentiment Index (CSI) showed a reading of 44.8, indicating further deterioration across household confidence with the figure remaining below the 50.0 mark that indicates neutrality. Whilst it crept [...]

  • Employment Rights Act set to stall hiring, says report

    February 16, 2026

    The government’s new package of employment rights will put a brake on hiring, according to a new report, as businesses worry about the possible risks and costs.  More than a third (37 per cent) of businesses surveyed by the the Chartered Institute of Personnel and Development (CIPD) plan to reduce hiring permanent staff as a [...]

  • Inflation tipped to fall to year-low in boost to interest rate cuts

    February 16, 2026

    Inflation is tipped to fall back to its lowest level for nearly a year in a busy week for UK economic data, with hopes the drop will help accelerate the Bank of England’s rate-cutting cycle. Economists are expecting the Office for National Statistics to show a sharp reprieve in the Consumer Price Index – the [...]

  • FTSE 100 Live: Zurich and Beazley £8bn deal gets time; Defence and bank stocks rally

    February 16, 2026

    Good morning and welcome back to the City AM liveblog. The first round of 2026 tech wobbles kicked into action last week and revived fears of an AI bubble. When Anthropic released a new AI tool designed to help in-house legal teams triage agreements and draft routine responses, the reaction trickled down through law firms straight into [...]

  • Most people have no idea how good AI is – and they’ll be the first to go

    February 12, 2026

    A viral post from an AI investor warns most people have no idea how good AI is, or how quickly it will come for their jobs. Will it come for mine? Maybe. A couple of weeks ago I looked at the essay written by Anthropic’s co-founder in which he expressed his fears that humanity won’t [...]

  • GDP: UK faces ‘most dismal decade for growth in 100 years’

    February 12, 2026

    The UK economy had a minor expansion in the fourth quarter of 2025 coming a touch below expectations as an expected boost from the services sector failed to come to fruition. Fresh figures from the Office for National Statistics (ONS) showed the economy expanded a sluggish 0.1 per cent in three months to December 2025. [...]

  • FTSE 100 Live: Schroders in £10bn deal; UK economic growth lags

    February 12, 2026

    Good morning and welcome back to the City AM liveblog. It was another record day for the FTSE 100 on Wednesday, which secured its highest close of all time. On a strong day for commodity-related stocks in London, London’s blue-chip index closed 1.14 per cent higher at 10,472p. But it wasn’t all cheery in the [...]

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