The US services sector ended 2016 on a strong note, confirms the purchasing managers’ index January 5, 2017 The US services sector expanded in December at the same rate as November, continuing healthy growth in the month before Donald Trump becomes US President, according to an important indicator of economic activity. The non-manufacturing purchasing managers’ index (PMI) stayed flat at 57.2, indicating a continued expansion in the sector for the 83rd month in [...]
Eurozone producer prices rise for the first time since June 2013, although ECB may be left in a quandary January 5, 2017 Producer prices in the Eurozone increased for the first time in over three years, as inflation finally starts to take hold. The annual rate of producer price inflation rose to 0.1 per cent in November, breaking a trend which had been in place since June 2013. Energy price rises of 0.7 per cent were the [...]
The dominant UK services sector reaches 17-month high in December as domestic demand increases strongly January 5, 2017 Economic activity in the UK’s dominant services sector ended 2016 on strong form to reach a 17-month high, according to an important indicator. The services purchasing managers’ index (PMI) rose beyond expectations for the third month in a row to 56.2 compared to a 55.2 reading the month before, according to IHS Markit. This is [...]
The optimal Brexit strategy is really quite simple – if Britain leaves the Customs Union January 5, 2017 Discombobulate means to confuse or disconcert. It’s a word which is likely to become very apt as politicians and the media struggle to define the Brexit strategy between now and the end of March – the deadline for initiating Article 50. For the life of me I can’t work out why everybody seems to be [...]
We won’t close the gender pay gap in the City until we face up to the pressures of having a family January 5, 2017 The Resolution Foundation’s report yesterday on the gender pay gap shows progress for young women graduates, but makes for depressing reading for women approaching their 30s. The pay gap for women in their 30s and 40s has hardly changed in a generation. The report concludes that having children has a “sharp and long-lasting” effect on [...]
No wonder the public doesn’t trust Labour with the economy – shadow chancellor John McDonnell can’t even add up January 5, 2017 Among its extensive list of New Year’s resolutions, the Labour party would have presumably included: “Try to win back an ounce of economic credibility”. Under the hapless leadership of socialist fanatics Jeremy Corbyn and John McDonnell, this once-proud party has plummeted in the polls, with a survey late last year revealing that just 18 per [...]
Increased turnover growth in sights for British companies – but inflation looms January 5, 2017 British business expectations of turnover growth have increased after a post-referendum dip, according to a new survey of more than 7,000 firms – although predictions of price rises have also risen sharply. Confidence in increased earnings increased at the end of the fourth quarter by seven percentage points to hit a net positive rating of [...]
US interest rates could rise higher than expected this year, minutes from the US Federal Reserve’s December meeting show January 4, 2017 The latest US Federal Reserve minutes have shown officials at the central bank believe interest rates could be forced to rise higher than expected this year, if tax cuts and aggressive fiscal policy are enacted under President-elect Donald Trump's administration. Market reactions to the US presidential election and the expectation of aggressive fiscal policy drove officials to hike interest rates [...]
The key US dollar three-month Libor rate rises above one per cent for first time since 2009 January 4, 2017 The key benchmark interest rate for banks to lend to each other has risen above one per cent for the first time since May 2009, in a long overdue sign of recovery in banking sector lending. The three-month US dollar Libor (London Interbank Offered Rate) rose to 1.00511 after being fixed at 0.99872 on Tuesday, [...]
Boost for ECB as Eurozone inflation reaches highest point since 2013 January 4, 2017 Eurozone inflation rose to its highest point since 2013 as higher oil prices fed through to the big increase, in welcome news for efforts by the European Central Bank (ECB) to boost Europe's economy. The annual rate of inflation rose to 1.1 per cent in December, according to flash estimates from the European Commission, almost [...]