US production growth booms as manufacturing expands at fastest rate since 2014 February 1, 2017 The US manufacturing sector grew faster than expected in January to expand at the fastest rate since the end of 2014, according to a widely followed indicator of economic health. The purchasing managers’ index (PMI) for America’s manufacturers reached 56 per cent, according to the Institute of Supply Management (ISM), up from 54.5 per cent [...]
The City A.M. Shadow Monetary Policy Committee votes to hold rates steady February 1, 2017 The Bank of England (BoE) is expected to leave interest rates and its quantitative easing policy unchanged at the latest meeting of the rate-setting Monetary Policy Committee (MPC). Most economists expect serious talk of a rate rise to be reserved until the latter half of the year at least – and the possibility remains of a further [...]
US private sector smashes expectations as most jobs added since June February 1, 2017 The US private sector jobs market smashed economists’ consensus expectations in January in a further sign the labour market in the world’s largest economy is heating up. Employment in the US private sector rose by 246,000 jobs in the last month, according to payrolls company ADP, the fastest rate since June 2016. This far outstripped [...]
UK’s producers are quick off the blocks as Eurozone sees five-year high in manufacturing activity February 1, 2017 UK manufacturers have shrugged off big input price increases to start 2017 in fine form, while activity in the Eurozone has reached its highest point since a debt crisis almost brought the continent’s economy to its knees, according to closely watched indicators. Growth in the sector’s output reached its highest point since May 2014 as [...]
Why the economics profession remains blind to the benefits of Brexit February 1, 2017 The office for National Statistics last week estimated that the UK economy grew at an annual rate of 2.4 per cent in the final quarter of last year. This is slightly above the long-term average growth of the past three decades. But a Financial Times survey this month showed that the majority of economists remain [...]
UK consumers are set for a big hit as inflation spikes this year February 1, 2017 Inflation is set to spike this year with the hit to consumer spending denting UK growth, according to an influential group of economists. Annual growth in the consumer price index will average 3.3 per cent in 2017, according to the National Institute of Economic and Social Research (Niesr), before slowing to 2.9 per cent next [...]
HMRC lays out plans to scrap yearly tax return and replace it with continuous online reporting January 31, 2017 The annual tax return will be a thing of the past by 2020, according to HMRC – potentially saving the taxman over £8bn per year. Under the government's proposals – part of its Making Tax Digital project – taxpayers will keep the Revenue updated online on a continuous basis, rather than filing a yearly return. [...]
China, Mexico, Japan: Who’s afraid of Trump’s protectionism? January 31, 2017 Anyone hoping that Donald Trump’s campaign promises were just talk can’t have been encouraged by this weekend’s events. Stock markets fell and the dollar was volatile yesterday on the news that the President had signed an executive order banning the entry of people from seven countries. Assumptions that he would row back from his more protectionist [...]
With fresh IMF warnings over Greece’s “unsustainable” debt, is the Eurozone crisis about to heat up again? January 31, 2017 Jennifer McKeown, chief European economist at Capital Economics, says Yes. The IMF’s renewed assertion that Greek public debt is unsustainable is little more than a statement of the obvious. But it suggests that the Fund will not contribute to the bailout as had been hoped, implying that Eurozone creditors will need to foot the bill [...]
New in-depth study finds apprenticeship levy is little more than a stealth tax and could distort training schemes January 31, 2017 The apprenticeship levy, a flagship government scheme intended to boost the training of young people, has been slammed as little more than a stealth tax following a damning new report by the Institute for Fiscal Studies (IFS) which found it represents “poor value for money”. The levy will apply to all businesses with a payroll [...]