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Economics

  • UK GDP suffers largest fall since 1979 in first quarter of 2020

    June 30, 2020

    UK GDP slumped by 2.2 per cent in a coronavirus-ravaged first quarter of 2020, its worst slump since 1979, data confirmed today. The figure was slightly higher than the Office for National Statistics’ (ONS) initial estimate of the pandemic hit. It initially measured a two per cent fall. The drop revealed today is the worst [...]

  • US pending home sales post record jump in May

    June 29, 2020

    Contracts to buy previously-owned homes in the US rose dramatically in May, posting the biggest rebound on record as the American housing market began to recover from the Covid-19 hit.  The National Association of Realtors (NAR) said that its Pending Home Sales Index, based on contracts signed last month, surged 44.3 per cent in May [...]

  • UK mortgage approvals plunge to record low as coronavirus hammers economy

    June 29, 2020

    UK mortgage approvals fell further to hit a record low in May as the coronavirus pandemic continued to hit the housing market, according to the latest Bank of England figures. Some 9,300 new loans for houses were approved last month, down from April’s 15,900. Economists polled by Bloomberg had been expecting 25,000 approvals for May.  [...]

  • German inflation beats expectations for June as services costs rise

    June 29, 2020

    Inflation in Germany rose more than expected in June, partly due to higher prices charged by services having to enforce strict hygiene standards as the country eased its coronavirus lockdown.  EU-harmonised German consumer prices rose 0.8 per cent this month compared to a year earlier, and 0.7 per cent compared to May’s figure.  Economists had [...]

  • Greta is wrong, environmentalists need markets to protect the planet

    June 29, 2020

    Free market advocates have too often vacated the environmental battlefield.  And they have been scared off for good reasons. At best, climate politics is dominated by those who see little to no role at all for markets. At worst, environmentalism is a thinly disguised excuse for advocating far-left economic and social policies. Some have labelled [...]

  • Eurozone economic confidence continues recovery in June

    June 29, 2020

    Economic sentiment in the eurozone continued to recover in June following a modest pick-up in May, with improvements recorded across all sectors.  Overall sentiment rose to 75.7 points in June from 67.5 in May, still short of market expectations of 80.0 and well below the average of 100 since 2000, new European Commission data showed. [...]

  • Coronavirus: Almost half of UK businesses expect they will have to lay off employees

    June 29, 2020

    Almost half of UK businesses expect that the coronavirus crisis will force them to lay off employees. A new survey from YouGov revealed that 42 per cent of UK businesses expect they will have fewer employees in a year’s time compared to before the coronavirus lockdown. This compares to just 16 per cent of people [...]

  • UK debt office plans record bond sales to help struggling economy recover

    June 29, 2020

    The UK will sell a record amount of government debt this year, testing the level of demand for gilts as Britain grapples with the economic fallout from the coronavirus pandemic.  The UK’s Debt Management Office (DMO) this morning announced plans to sell a further £50bn of bonds by the end of August, bringing its issuance [...]

  • Boris Johnson prepares spending splurge for ‘thunderclap’ economic downturn

    June 28, 2020

    Boris Johnson has pledged to spend tens of billions of pounds on a raft of infrastructure projects and jobs programmes to help the UK economy bounce back from the coronavirus crisis. Johnson said he would “double down” on his election commitment to “level up” the country and would fast track a swathe of infrastructure projects. [...]

  • Rishi Sunak says government bailouts are a ‘last resort’

    June 26, 2020

    Rishi Sunak has said that government bailouts are not an “attractive long term feature of the economy” as companies grapple with the impact of coronavirus. Speaking to Bloomberg TV, the Chancellor said the government is the last resort and the bar is “exceptionally high” for company bailouts. He noted: “This is not my money. It’s [...]

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