Latest Economic News
The latest news on the UK, US and world economies:
July 24, 2008
Official figures have revealed that UK retail sales fell 3.9% in June - this represents the largest monthly fall since records began in 1986.
An unexpected 3.6% increase was announced in May, therefore, a fall of just 2.5% was forecasted by analysts for June due to consumers cutting back as they struggle with rising fuel and food costs.
The ...
Retail sales fall at fastest rate for two decades
by Kay Murchie
July 21, 2008
Ernst & Young ITEM Club is forecasting GDP growth of just 1% next year after the UK grapples with rising inflation, falling property prices and the tightening of credit.
The influential think tank also indicated that there will be a considerable increase in unemployment in the next 12 months.
Ernst & Young's ITEM Club also predicts that consumer spending will almost grind to ...
Forecast for UK economy is ‘gloomy’
by Kay Murchie
July 17, 2008
Figures from the Office for National Statistics have revealed that unemployment in the UK increased by 12,000 to 1.62 million in the 3 months to May.
The figures are the worst for 16 years after the amount of people claiming unemployment benefit rose by 15,500 in June to 840,100. Economists believe this could exceed a million by the end of 2009.
In the ...
Unemployment in the UK increases
by Kay Murchie
July 15, 2008
Figures from the British Retail Consortium (BRC) have shown only a slight sales growth on the High Street in May.
Changeable weather and a cutback in consumer spending meant shoppers stayed away last month with like-for-like retail sales falling 0.4%, compared with the same period last year.
According to the BRC, food sales were up slightly while the only sector to ...
High Street sales continue to be weak
by Kay Murchie
Inflation nearly double 2% target
by Kay Murchie
July 10, 2008
The Bank of England’s Monetary Policy Committee (MPC) has met this morning and decided to keep UK interest rates on hold at 5%, which was widely expected, despite requests from businesses to cut rates following fears about a likely recession in the UK.
Inflation currently stands at 3.3%, well above its 2% target rate, which is why many analysts forecasted rates to ...
Interest rates on hold at 5%
by Kay Murchie
July 8, 2008
The British Chambers of Commerce’s (BCC) quarterly report has suggested that a recession in Britain is looming with the credit crunch and soaring costs denting the most important sectors of the economy.
The BCC said that activity in the UK services sector (which makes up for 75% of the UK’s economy) had slumped to levels not experienced since the recession in the ...
Britain facing serious risk of recession
by Kay Murchie
July 7, 2008
Official data has revealed that manufacturing production fell in May triggering fears that the UK economy is heading towards a recession.
The figures were much worse than anticipated as output fell by 0.5% during the month, while the wider measure of industrial production, including energy and water output, dropped 0.8%.
The latest fall in manufacturing left the level of ...
Sharp fall in manufacturing output fuels recession fears
by Kay Murchie
Financial recruitment grinds to a halt
by Kay Murchie
July 6, 2008
The Bank of England’s Monetary Policy Committee is to meet later this week and it is being urged to keep interest rates at 5% to stave off a recession.
Last month, it was widely believed by analysts that interest rates would have to rise in order to manage runaway inflation.
It is believed by many that the nine-member committee will vote ...
MPC under pressure to hold interest rates
by Kay Murchie
June 30, 2008
New monthly figures have highlighted that consumer confidence in the UK continues to fall.
Households are worried about their financial future more now than during the last recession. Rising inflation, utility and food costs means families are struggling and are cutting back on spending.
The fall in confidence has been highlighted in the GfK NOP Consumer Confidence Barometer. Figures showed that the pace of economic ...
UK confidence falls further
by Kay Murchie
June 23, 2008
As the economy grinds to a virtual standstill, up to 350,000 people will lose their jobs according to a survey by the Centre for Economic and Business Research (CEBR) and the Hay Group, a management consultant.
This estimate was based on interviews with 120 bosses in charge of companies who generate annual sales of at ...
Hundreds of thousands of jobs to go as a result of economic slowdown
by Kay Murchie
June 19, 2008
Consumers have shrugged off the current economic climate and rushed out to the shops after a record level of retail spending was recorded last month.
Figures from the Office for National Statistics showed that British retail sales soared in May, increasing at the fastest pace of growth since the series began in 1986. The news has stunned economists and has heightened fears ...
British retail sales soar in May
by Kay Murchie
June 18, 2008
After consumer inflation soared to its highest level in a decade, Chancellor Alistair Darling has warned that there is no doubt the UK economy is slowing down and said this year will be difficult.
Mr Darling added that if the UK allowed inflation to take hold, it could be disastrous.
The government has predicted that the UK economy will grow by between 1.75% ...
Difficult year ahead warns Chancellor
by Kay Murchie
June 13, 2008
The Bank of England’s latest survey of inflation expectations has revealed that the British public expects the cost of living to escalate at more than double the rate of official targets in the next 12 months.
According to the Bank’s quarterly attitudes survey, the majority of those questioned forecast the average rate of inflation to be 4.3% in the ...
BoE survey reveals Britons fears on prices and rates
by Kay Murchie
June 12, 2008
The shock resignation of David Davis from the House of Commons is a brilliant political strategy.
By forcing a by-election where the Liberal Democrats have agreed not to stand, Labour faces a rout that will make Crewe and Nantwich look like a picnic.
And, of course, if re-elected - as expected - then David Davis can happily rejoin the Conservative party having caused ...
David Davis resignation undermines Brown in brilliant political strategy
by Brian Turner
UK unemployment figures increase by 38,000
by Kay Murchie
Bank shares hit due to economy concerns
by Kay Murchie
June 11, 2008
City analysts have been predicting interest rate falls to 4.5% by the end of 2008. However, they are now gambling that rates will have to increase from the current level of 5% to manage spiralling inflation.
City economists said that at the very best, all hopes of an interest rate cut this year have now been 'snuffed out'.
The reversal in ...
Investors gamble on interest rates rising
by Kay Murchie
Bank of England Governor warns financial crisis not yet over
by Kay Murchie