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Economics

  • UK businesses turn to temp staff amid recession worries

    May 10, 2023

    UK businesses are turning to part-time staff to avoid locking into long-term contracts for fear of being dragged down by the economic slump, a new survey out today shows. Demand for temporary staff is running much higher than for full-time workers, according to consultancy KPMG and the Recruitment and Employment Confederation (REC). The pair’s permanent [...]

  • UK risks dropping green energy lead by failing to respond to Biden’s $400bn package, Johnson Matthey chief warns

    May 10, 2023

    The head of one of Britain’s largest manufacturers has warned Prime Minister Rishi Sunak that he risks squandering the country’s lead in clean energy production by failing to respond to US President Joe Biden’s $400bn (£317bn) green stimulus package. Liam Condon, chief executive of Johnson Matthey, told Sky News it has intellectual property which could [...]

  • FTSE 100 close: Barclays and NatWest rise on London index as stalling house prices knock builders

    May 9, 2023

    London’s FTSE 100 kick started a fresh week down today, with Britain’s biggest home builders sliding after new figures showed house price growth has stalled. The capital’s premier index nudged 0.18 per cent lower to 7,764.10 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, [...]

  • Why you should never, ever bet against UK house prices

    May 9, 2023

    Remember the start of the year?  “UK house prices have gone into sharp reverse over recent months. And we expect that elevated mortgage rates will result in at least a 12 per cent price correction,” so said Capital Economics at the time. This is from building society Nationwide last week: “While annual house price growth [...]

  • Bank of England to hike interest rates for 12th time in a row and forecast falling inflation

    May 9, 2023

    The Bank of England is poised to intensify the strain on households and businesses’ finances by hiking interest rates for the 12th time in a row this Thursday in a bid to bring down inflation, City analysts are betting. Threadneedle Street’s nine-member Monetary Policy Committee (MPC), the group tasked with setting official borrowing costs in [...]

  • Booming services sector steers UK economy further away from recession

    May 9, 2023

    Britain’s economy is running at its strongest level in nearly a year, powered by households still splashing the cash amid the cost of living crisis in another sign the country will skirt a recession. A new survey out last night from consultancy BDO revealed output growth in the UK reached its highest level in eight [...]

  • UK to officially avoid recession in first half of this year as Bank of England readies twelfth straight interest rate rise

    May 8, 2023

    Britain is set to have officially avoided a recession in the first half of this year in a sharp turnaround in fortunes for the country’s economy, figures out this week are expected to reveal. Gross domestic product (GDP), which measures the amount of goods and services produced in the UK, is anticipated to have risen [...]

  • Euro rate hikes: Not done yet, says member of the governing council

    May 7, 2023

    The European Central Bank’s interest rate hikes are starting to have an effect, but more will be needed to contain inflation, Dutch Central Bank President Klaas Knot said on Sunday. Knot, who is also on the ECB’s governing council and is known as a hawk, said he had agreed with the ECB decision on Thursday [...]

  • US unemployment figures ‘confound expectations’ with 50 year jobless low, raising spectre of more Fed rate rises

    May 5, 2023

    US employers went on a hiring spree in April while raising wages for workers at the same time, according to the Labour Department. The news that nonfarm payrolls increased by 253,000 jobs last month immediately sparked speculation that the US central bank the Federal Reserve could maintain its current policy of keeping rates higher. The [...]

  • European Central Bank hikes interest rates for seventh time in a row and Lagarde signals more rises

    May 4, 2023

    The European Central Bank (ECB) today hiked interest rates for the seventh time in a row and slowed the pace of its aggressive campaign to tame inflation, though its chief Christine Lagarde signalled more rises are coming. She and the rest of the governing council sent borrowing costs among the 20 countries using the euro [...]

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