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News Tag: Economy News

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 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 ...




August 7, 2012

Economy benefiting from PPI refunds

by Jan Harris
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 £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 averaging £2,750, the compensation has helped to ...




July 25, 2012

Double-dip recession worst for 50 years

by Jan Harris
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 recession has extended into a third consecutive ...




July 11, 2012

Double-dip recession deepens

by Jan Harris
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 cent fall in GDP in the first quarter and a ...




May 18, 2012

Turmoil in Eurozone increases mortgage costs

by Jan Harris
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. “In the absence of falls in funding costs, it suggests that some further increase ...




April 25, 2012

UK economy back in recession

by Jan Harris
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 after construction output fell sharply. Production output fell ...




February 14, 2012

Inflation down to 3.6% in January

by Jan Harris
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 has fallen for the last four ...




February 6, 2012

Bank of England to launch £50bn economic stimulus

by Jan Harris
Bank of England to launch £50bn economic stiumulus
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 £50 billion into the economy by purchasing government gilts from ...




January 23, 2012

Gap between rich and poor cities to widen

by Jan Harris
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 the private sector and ...




October 25, 2011

India lifts interest rates further to combat inflation

by Kay Mitchell
”India
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 expected. Figures recently revealed India’s wholesale ...




October 21, 2011

UK Public Sector Borrowing lower than expected in September

by Kay Mitchell
”UK
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 £14.1 billion in September, boosted by tax receipts. Analysts had expected borrowing to total £14.5 billion. Furthermore, the ONS revised down the borrowing figure for August by £2 billion ...




Nationwide: UK consumer confidence slips further in September

by Kay Mitchell
”Nationwide:
The latest survey from the Nationwide Building Society has revealed a fall in UK consumer confidence for the month of September. The building society’s consumer confidence index fell for the fourth consecutive month, falling by 3 points to 45 in September – hovering dangerously close to the all-time low of 41. Furthermore, it is 10 points lower than this time last ...




October 19, 2011

BoE minutes: MPC unanimous over fresh round of QE

by Kay Mitchell
”BoE
Minutes of the Bank of England’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 inflation running at more ...




October 17, 2011

Item Club warns of euro zone crisis impact

by Kay Mitchell
”Item
Leading think tank, the Ernst & Young Item Club, has warned that growth within the UK economy is “grinding to a halt” 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 come just a week after the ...




October 14, 2011

Indian inflation eases in September

by Kay Mitchell
”Indian
Figures today revealed India’s wholesale price inflation eased to annual rate of 9.72% last month, down from August’s rate of 9.78%. However, the rate is still significantly above the central bank’s target of between 4% and 5% and represented the tenth consecutive month that inflation has been above the 9% mark. Stubbornly high inflation has led analysts to expect the central bank to lift ...




October 13, 2011

UK trade deficit narrows in August

by Kay Mitchell
”UK
The Office for National Statistics (ONS) has today revealed the UK trade deficit narrowed in August as export values hit an all-time high and imports fell. The goods trade gap shrank to £7.77 billion in August from £8.15 billion the previous month, said the ONS. Total exports of goods reached £25.5 billion, led by fuels intermediate goods such as mechanical engineering products and ...




October 11, 2011

Weak UK factory output suggests poor start to Q3

by Kay Mitchell
”Weak
The Office for National Statistics (ONS) has today revealed UK factory output fell 0.3% in August on a monthly basis. The reading was worse than economists had expected and confirm weak prospects for the economy after the figures suggest a poor start to the third quarter. On an annual basis, meanwhile, factory output was 1.5% higher – representing the weakest ...




October 10, 2011

CIPD reveals public sector job losses deeper than forecast

by Kay Mitchell
”CIPD
According to the Chartered Institute of Personnel and Development (CIPD), more public sector job losses are being axed than originally forecast. The employers group said 610,000 jobs in the sector will be lost between 2010/11 and 2015/16 – one third more than the 410,000 the Office for Budget Responsibility (OBR) originally predicted. The group is therefore calling on the Government ...




October 7, 2011

US unemployment rate holds steady at 9.1%

by Kay Mitchell
”US
According to the Labor Department, the world’s largest economy added 137,000 new jobs last month, as the public sector cut 34,000 jobs. According to the Labor Department, the private-sector numbers benefited from the return of around 45,000 Verizon workers who had fallen off payrolls in August due to a strike. Excluding those workers, payrolls increased by 58,000. The latest figure means the unemployment ...