UK businesses and consumers see rosy economic prospects peak at the end of 2016, as confidence in Europe rises January 6, 2017 UK business confidence in the economy’s prospects increased to a 2016 high in December as Eurozone companies also saw a strong improvement in trading conditions, according to the European Commission. The buoyant services sector drove UK economic sentiment to an increase of 1.3 per cent, reflecting recent news of a rise in the services purchasing [...]
Productivity puzzle remains for economists despite UK growth in third quarter of 2016 January 6, 2017 The UK is still struggling to increase the amount it increases per worker as economists wrestle with a continued “productivity puzzle”, new official data shows. Labour productivity, measured by the amount the UK produced per hour, grew by only 0.4 per cent in the third quarter of 2016, representing a flat rate of growth, according [...]
Donald Trump reflation story continues to enthral investors as money market fund flows increase January 6, 2017 Investors have rushed to put money into money market funds, as they continue to back the story that inflation is going to grow under US President-elect Donald Trump. Fund flows into money market funds in the week ending 4 January grew to $31.7bn (£25.7bn), up from $16bn in the week including the Christmas holiday, according [...]
Editor’s notes: The great Civil Service myth, and why it’s time to shake things up… January 6, 2017 Though probably not on your daily reading list, Dominic Cummings (former adviser to Michael Gove and a top dog in the official Leave campaign) writes a fascinating blog. In between posts on artificial intelligence, super-computing and advanced physics, you’ll find reflections on his time working at the Department for Education as Gove’s senior adviser. If you [...]
A liberal Brexit means continued EU-UK cooperation – but this time as equals January 6, 2017 Brexit means something remarkably straightforward: at some point before the middle of 2019, the UK will no longer be under the jurisdiction of any EU court or legislature. The fact of our impending departure does not, however, mean cutting ourselves off from Europe. If Brexit is easy to define, the details of what our post-EU relationship [...]
With PMIs suggesting strong growth in the UK economy at the end of 2016, will it remain robust in 2017? January 6, 2017 Ruth Lea, economic adviser at Arbuthnot Banking Group, says Yes. The latest Markit survey results found that business activity picked up appreciably in December in all three sectors – manufacturing, construction and services, suggesting that growth remained buoyant in the final quarter. Moreover, I expect growth to remain fairly robust in 2017, at around 1.5 [...]
The UK boosted its productivity potential last year, but Brexit could push it back down again January 5, 2017 The UK's comparative potential for productivity grew last year, but a bad Brexit deal could see it slip back down the rankings, research released today has found. The country crept up from 14th to 13th place in KPMG's Variables for Sustained Growth (VSG) Index, which rates the productivity potential in different countries. The final VSG score [...]
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 [...]