|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    23rd of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

All Financial News feed All Financial News




Latest Economic News

The latest news on the UK, US and world economies:

December 18, 2012

Monthly incomes £22 lower in 2012

by Jan Harris
Monthly incomes £22 lower in 2012
The average monthly income of UK households fell by £22 in real terms compared with last year, according to a survey carried out for the Bank of England (BoE) by NMG Consulting. People on lower incomes have seen their income eroded more than higher earners and households still have high levels of debt the BoE reported. The survey, which was published by ...




December 13, 2012

Chancellor open-minded about ending inflation target

by Jan Harris
Chancellor open-minded about ending inflation target
Chancellor George Osborne has welcomed remarks made by the incoming Governor of the Bank of England about scrapping the inflation target to focus on gross domestic product (GDP). Such a change in strategy would require the Bank of England to introduce new measure to stimulate the economy, even if this caused inflation to rise. Mark Carney, who will take over from Sir ...




December 5, 2012

Austerity measures extended in Autumn Statement

by Jan Harris
Austerity measures extended in Autumn Statement
Chancellor George Osborne is extending the government’s austerity measures until 2018, a year longer than expected, after the Office for Budget Responsibility revised down its forecast for economic growth. Last year, the OBR was optimistic that the economy would grow by 0.8 per cent this year, but it now expects it to contract by 0.1 per cent, partly due to continuing problems ...




December 4, 2012

Global slowdown holding back UK growth

by Jan Harris
Global slowdown holding back UK growth
Economic growth is still too weak, the British Chambers of Commerce (BCC) says, although growth exceeded expectations in the last quarter, helped by the Olympics. The BCC expects the UK economy to contract by 0.1 per cent this year, an improvement on the 0.4 per cent contraction previously forecast. However, the organisation has reduced its growth forecast for 2013 from 1.2 ...




November 26, 2012

Austerity measures could continue until 2018

by Jan Harris
Austerity measures could continue until 2018
Prior to the Chancellor’s Autumn Statement on 5 December, the Institute for Fiscal Studies (IFS) has warned that the squeeze on public spending may have to continue to 2017/18. Slower than expected economic recovery may mean that the Chancellor, George Osborne, will need to raise another £11 billion from further cuts or by increasing taxes. This would be on top of a ...




November 22, 2012

Real value of pay falls in UK

by Jan Harris
Real value of pay falls in UK
The average annual earnings of full-time UK workers increased by 1.4 per cent to £26,500 in the year to April 2012, according to the latest figures from the Office for National Statistics (ONS). However, with inflation at 3.5 per cent during this period, the figures represent a fall in the value of pay in real terms. Workers in Northern Ireland saw ...




November 19, 2012

Strain on household finances continues to ease

by Jan Harris
Strain on household finances continues to ease
Financial information services company Markit has reported a further improvement in household finances. Although household finances are continuing to deteriorate, the rate of deterioration fell in November, to its slowest rate for two years. The Markit Household Finance Index increased from 39.0 to 39.3, its fifth increase in six months, but this is still well below 50.0, which indicates no change. ...




November 15, 2012

Two-child families need £25,000 a year to survive

by Jan Harris
Two-child families need £25,000 a year to survive
Families with two children need to bring home £24,800 a year just to break even, according to financial advisory firm Skipton Financial Services. This means that they need to be earning more than £30,000 a year gross in order to survive. The cost of living has increased by £130 compared with last year Skipton revealed, after surveying of the expenditure of ...




November 14, 2012

Bank of England reduces UK growth forecast to 1%

by Jan Harris
Bank of England reduces UK growth forecast to 1%
The Bank of England has reduced its growth forecast to 1 per cent and does not expect inflation to fall to its 2 per cent target until the middle of next year. Presenting the Bank's quarterly Inflation Report, the governor of the Bank of England, Sir Mervyn King, said that economic recovery would be "slow and protracted". One ...




November 13, 2012

Inflation increases to 2.7%

by Jan Harris
Inflation increases to 2.7%
A combination of higher tuition fees and food prices pushed the inflation rate up to 2.7 per cent last month, according to the latest figures from the Office for National Statistics (ONS). Inflation on the Consumer Prices Index (CPI) increased to 2.7 per cent from 2.2 per cent in September, while the Retail Prices Index (RPI) measure of inflation, which includes housing costs, ...




November 5, 2012

Service sector growth slows

by Jan Harris
Service sector growth slows
Optimism over the economy has been hit by significantly slower growth in the UK’s largest sector in October. At 50.6 on the Markit/CIPS Purchasing Managers' Index (PMI) growth in the dominant service sector fell to its weakest level for nearly two year. Analysts had expected it to fall to 52.0 from 52.2 in September, with figures above 50 representing growth. The decline was caused by ...




October 31, 2012

Consumer confidence hits six-month low

by Jan Harris
Consumer confidence hits six-month low
Although the UK has officially emerged from recession, consumer confidence fell to -30 in October from -28 in September, according to market researcher company GfK NOP. This is the lowest level of consumer confidence since April when the UK was in an economic slump. Analysts had expected the index to remain stable at -28. Respondents to the survey said they were pessimistic for ...




October 26, 2012

UK economy leads Europe

by Jan Harris
UK economy leads Europe
The UK economy emerged from recession yesterday and now leads the way in Europe according to research group Capital Economics. Gross Domestic Product (GDP) grew by one per cent in the third quarter from July to September, the biggest rise for five years, the latest official figures from the Office for National Statistics (ONS) show. Olympic ticket sales are believed to have contributed 0.2 ...




October 22, 2012

Improvement seen in consumer finances

by Jan Harris
Improvement seen in consumer finances
Two separate surveys have reported an improvement in household finances, bolstering optimism that the recession is coming to an end. Although Markit, the financial information services company, reported a worsening in consumer finances in October, it was the smallest deterioration in the past two years. The Markit Household Finance Index, which is designed to accurately anticipate changing consumer behaviour, increased from 38.4 ...




October 16, 2012

Inflation falls to 2.2%

by Jan Harris
Inflation falls to 2.2%
The rate of inflation on the Consumer Prices Index (CPI) fell to 2.2 per cent last month according to the Office for National Statistics (ONS), its lowest level since November 2009. In August, CPI inflation, which excludes mortgage interest payments, stood at 2.5 per cent. The Retail Prices Index (RPI) measure of inflation, which includes mortgage payments, fell to 2.6 per cent in ...




October 15, 2012

Consumer spending power weakens

by Jan Harris
Consumer spending power weakens in September
Annual income growth fell to 1.7 per cent last month, its lowest level since December 2010, according to Lloyds Banking Group’s Spending Power Report for September. This was largely responsible for a 0.9 per cent fall in real discretionary spending power, with the amount consumers have to spend on non-essential items falling around £8 per month. Taking into account inflation, real income growth ...




October 10, 2012

UK out of recession economic research institute claims

by Jan Harris
UK out of recession economic research institute claims
The UK economy returned to growth in the third quarter according to the National Institute of Economic and Social Research (NIESR), marking an end to the double dip recession. The NIESR estimates that GDP grew by 0.8 per cent in the three months ending in September, building on an improvement seen in the three months ending in August, when GDP ...




October 5, 2012

UK consumer spending higher in September

by Jan Harris
UK consumer spending higher in September
Consumer spending increased by 3 per cent in September compared with August, as people spent more on clothes and in hotels and restaurants. The figures, from Visa Europe's UK expenditure index which is compiled by Markit, represent the biggest increase since May 2009. The increased spending follows improvements in the job market which have boosted disposable incomes. Although in-store spending increased by ...




October 2, 2012

British Chambers of Commerce forecasts end to recession

by Jan Harris
XXX
According to the British Chambers of Commerce’s quarterly economic survey gross domestic product will grow by 0.5 per cent in the third quarter, marking an end to the recession. The BCC is optimistic for growth in the third quarter despite the UK’s continuing weak economic performance. It says that data released by the Office for National Statistics (ONS) suggesting that the UK has been in a ...




September 21, 2012

Bank of England optimistic for economic growth

by Jan Harris
XXX
Sir Mervyn King, the governor of the Bank of England, expects the UK economy to return to growth in the next quarter, marking an end to the double-dip recession. Speaking on Channel 4 News, Sir Mervyn warned that recovery would be slow and said that the continuing crisis in the eurozone creates uncertainty for British business. "I think we’re beginning to see a few signs now ...