Tag: Economy News

Austerity measures could continue until 2018

Austerity measures could continue until 2018

Prior to the Chancellora��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 A?11 billion from further cuts or by increasing taxes. […]

November 26, 2012 More
Service sector growth slows

Service sector growth slows

Optimism over the economy has been hit by significantly slower growth in the UKa��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 […]

November 5, 2012 More
Economy benefiting from PPI refunds

Economy benefiting from PPI refunds

The UK economy is receiving a welcome boost from compensation paid by banks to customers who were mis-sold payment protection insurance (PPI). British banks have already paid out A?9 billion after it came to light that they had been routinely mis-selling insurance policies designed to protect repayments on mortgage, loan and credit cards. With payouts […]

August 7, 2012 More
Double-dip recession worst for 50 years

Double-dip recession worst for 50 years

The latest official figures reveal that the UK economy contracted by 0.7 per cent in the second quarter of 2012, significantly more than the 0.2 per cent fall in GDP expected by economists. It is the largest fall in quarterly UK economic outlook since the first three months of 2009 and means that the double-dip […]

July 25, 2012 More
Double-dip recession deepens

Double-dip recession deepens

The UK economy has contracted for three consecutive quarters according to new figures from the National Institute of Economic and Social Research (NIESR). NIESR estimates that GDP fell by 0.2 per cent in the 2012 second quarter, with the extra bank holiday for the Diamond Jubilee contributing to the fall. This follows a 0.3 per […]

July 11, 2012 More
Turmoil in Eurozone increases mortgage costs

Turmoil in Eurozone increases mortgage costs

The Bank of England has warned that the ongoing Eurozone crisis is pushing up the cost of borrowing on wholesale financial markets. This is making it more expensive for lenders to fund mortgages and they are passing the costs on to customers by increasing their mortgage rates. a�?In the absence of falls in funding costs, […]

May 18, 2012 More
UK economy back in recession

UK economy back in recession

Provisional figures from the Office for National Statistics (ONS) show that the UK economy has contracted for two consecutive quarters, which means it has fallen back into recession. The economy shrank by 0.3% in the fourth quarter of 2011 and the latest figures show a contraction of 0.2% in the first three months of 2012 […]

April 25, 2012 More
Inflation down to 3.6% in January

Inflation down to 3.6% in January

Inflation fell sharply in January to 3.6 per cent on the Consumer Prices Index (CPI), from 4.2 per cent in December, according to the latest official figures. Retail Prices Index (RPI) inflation, which includes housing costs such as mortgage interest and council tax, fell to 3.9 per cent from 4.8 per cent. Although CPI inflation […]

February 14, 2012 More
Bank of England to launch A?50bn economic stimulus

Bank of England to launch A?50bn economic stimulus

The bank of England is expected to launch another round of quantitative easing (QE) this week, in the hope of preventing the UK falling into another recession, after the economy contracted by 0.2 per cent at the end of last year. The bank is likely to pump at least A?50 billion into the economy by […]

February 6, 2012 More
Gap between rich and poor cities to widen

Gap between rich and poor cities to widen

The economic gap between cities doing relatively well during the economic downturn and those that have been hard hit by the recession, is expected to widen. A report by the Centre for Cities, a research and policy organisation focused on improving the economic performance of UK cities, suggests that a combination of weak growth in […]

January 23, 2012 More
UK faces stagnation but may escape recession

UK faces stagnation but may escape recession

Britain’s economy stagnated in the final quarter of 2011 and is “very likely” to contract in the first half of 2012 according to the British Chambers of Commerce (BCC). The euro zone debt crisis caused the economy to stagnate in 2011 and it has failed to improve this year, with the survey suggesting that one […]

January 10, 2012 More
Chancellor warns UK at risk if euro collapses

Chancellor warns UK at risk if euro collapses

As the leaders of the European Union’s 27 member states prepare to meet over a possible new EU treaty, the UKa��s chancellor George Osborne warned a House of Lords committee that a collapse of the euro would do ‘enormous damage’ to the UK economy. Mr Osborne also stressed that the damage would be long-term. Speaking […]

December 8, 2011 More
Australia cuts interest rates to boost growth

Australia cuts interest rates to boost growth

The Reserve Bank of Australia (RBA) has today elected to cut interest rates by one quarter of a percentage point to 4.5% in a bid to bolster growth. The move, which was widely expected, comes as the global economy slows and unemployment rises (currently at 5.2%). It was the first time in two-and-a-half years that […]

November 1, 2011 More
UK manufacturing activity contracts in October

UK manufacturing activity contracts in October

The Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managersa�� index (PMI) has today revealed UK manufacturing activity contracted last month. The closely-watched CIPS/Markit manufacturing PMI sank to 47.4 in October from Septembera��s reading of 50.8. Todaya��s survey means the index has fallen below the crucial 50 mark a�� which separates growth from expansion. […]

US consumer spending up in September

US consumer spending up in September

Official figures have revealed consumer spending in the US improved last month. According to the Commerce Department, consumer spending rose 0.6% to $68.7 billion (A?42.7 billion) in September and follows a 0.2% rise in August. The figures will be a welcome boost for the economy which looked set to be heading towards a double dip […]

October 29, 2011 More
India lifts interest rates further to combat inflation

India lifts interest rates further to combat inflation

The Reserve Bank of India (RBI) has today raised key interest rates for the thirteenth time since March 2010, in a bid to tame stubbornly high inflation. The central bank lifted its main rate to 8.5% from 8.25% as inflation soars on the back of higher food and fuel prices and the measures were widely […]

October 25, 2011 More
UK Public Sector Borrowing lower than expected in September

UK Public Sector Borrowing lower than expected in September

The Office for National Statistics (ONS) has today revealed UK public sector net borrowing fell last month. According to the ONS, public sector net borrowing came in at a lower than expected A?14.1 billion in September, boosted by tax receipts. Analysts had expected borrowing to total A?14.5 billion. Furthermore, the ONS revised down the borrowing […]

October 21, 2011 More
Nationwide: UK consumer confidence slips further in September

Nationwide: UK consumer confidence slips further in September

The latest survey from the Nationwide Building Society has revealed a fall in UK consumer confidence for the month of September. The building societya��s consumer confidence index fell for the fourth consecutive month, falling by 3 points to 45 in September a�� hovering dangerously close to the all-time low of 41. Furthermore, it is 10 […]

BoE minutes: MPC unanimous over fresh round of QE

BoE minutes: MPC unanimous over fresh round of QE

Minutes of the Bank of Englanda��s October 5-6 meeting have been released today and have revealed all nine members of the Monetary Policy Committee (MPC) voted to keep interest rates at the historic low of 0.5%. This was the third consecutive month that the Committee voted unanimously to keep rates at the record low, despite […]

October 19, 2011 More
Item Club warns of euro zone crisis impact

Item Club warns of euro zone crisis impact

Leading think tank, the Ernst & Young Item Club, has warned that growth within the UK economy is a�?grinding to a halta�? because of the euro zone debt crisis. The Item Club also warned that the quantitative easing (QE) measures, announced recently by the Bank of England, are unlikely to boost the recovery. Its comments […]

October 17, 2011 More