Tag: recovery
UK interest rates remain on hold
The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5%, as widely expected. Interest rates have now been at this low level since March 2009 – when the economy was in the midst of recession. Recent figures show the economy [...]
UK interest rates to remain on hold today
The Bank of England’s Monetary Policy Committee (MPC) commenced its two-day rate-setting meeting yesterday and interest rates are expected to remain on hold at the record low of 0.5% – where they have been since March 2009. The bank is presented with a dilemma as it comes under pressure to raise interest rates to combat [...]
UK manufacturing activity hits 21-month low
The Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managers’ index (PMI) has today revealed UK manufacturing grew at its slowest rate in almost two years in June. The closely-watched CIPS/Markit manufacturing PMI dived to a 21-month low of 51.3 last month from May’s reading of 52. June’s reading was slightly lower than the [...]
Bank of England: Home repossessions to stay low
According to Sir Mervyn King, the Governor of the Bank of England, a surge in home repossessions is unlikely as UK interest rates are set to remain low. Repossessions have fallen over recent times and many experts have previously argued that homeowners have been saved from repossession because of historically low interest rates, which has [...]
UK Q1 economic growth figures remain unchanged
The Office for National Statistics (ONS) has today revealed the UK economy grew by 0.5% in the January to March period – unchanged from the previous two estimates. In the meantime, annual growth was revised down to 1.6% from 1.8%. The growth, albeit slow, expanded primarily due to exports, with net trade contributing 1.4% points [...]
Euro zone debt crisis could affect UK recovery
Treasury Minister, Mark Hoban, has today said the ongoing “instability” in the euro zone could hold back the recovery of the UK economy. While banks in the UK only have a small exposure to Greek debt compared with France and Germany, it could still have a considerable impact on the economy. Mr Hoban was responding [...]
BoE report suggests low interest rates in the short-term
In its influential Quarterly Bulletin, the Bank of England said interest rates can be held at the historic low of 0.5% in order to prevent growth from stalling. The statement comes despite inflation being more than double the target of 2% and many business groups are calling on the bank to lift rates to combat [...]
UK industrial output falls more than expected in April
The Office for National Statistics has today revealed UK industrial output fell 1.7% in April – confounding expectations of a 0.1% rise. The fall was attributed to the extra bank holiday for the Royal Wedding and the impact of Japan’s earthquake and tsunami, which disrupted the supply chain. The fall represented the biggest since August [...]
UK interest rates remain on hold
The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5%, as widely expected. Interest rates have now been at this low level since March 2009 – when the economy was in the midst of recession. Recent figures show the economy [...]
UK service sector activity sinks to 3-month low in May
Growth in the UK’s closely-watched service sector slowed in May, figures have revealed today. The Chartered Institute of Purchasing and Supply (CIPS)/Markit purchasing managers’ index (PMI) eased to a 3-month low of 53.8 in May from 54.3 the previous month. Analysts had expected the index to be around the 54.0 level. However, the index remains [...]
Weak US data sends Asian shares falling
Asian shares fell today after the world’s largest economy raised fears of a slowdown. Figures issued in the US yesterday revealed manufacturing activity slowed to its lowest level since September 2009 and was weaker than economists had expected. Furthermore, payroll processing firm ADP said private employers created a less than expected 38,000 jobs last month [...]
UK manufacturing activity hits 20-month low
The Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managers’ index (PMI) has today revealed UK manufacturing activity slowed in May. The closely-watched CIPS/Markit manufacturing PMI dropped to 52.1 in May, from a reading of 54.4 in April. The reading was much lower than the 54.1 expected by analysts and the lowest reading since [...]
UK’s slow rate of growth could force easing of cuts
The OECD’s chief economist, Pier Carlo Padoan, has warned that the UK may be forced to ease its pace of spending cuts if economic growth remains sluggish. Mr Padoan of the Organisation for Economic Co-operation and Development said if growth worsens, the Government may need to reconsider its plans for cutting the deficit. In the [...]
German business confidence remains flat in May
The Munich-based Ifo think tank has revealed confidence among German firms remained flat in May. The closely-watched Business Climate Index remained unchanged at 114.2 in May, surprising analysts’ who had expected the index to slip to 113.7. Ifo surveys around 7,000 German manufacturing, construction, wholesale and retail companies each month. Export demand helped to bring [...]
IEA: Oil supply could threaten global recovery
Paris-based International Energy Agency (IEA) has warned that rising oil prices pose a risk to the global recovery by reducing spending power and fuelling inflation. The agency is urging oil producers to increase supplies to avoid “derailing the economic recovery”. The agency said it is seriously concerned that “there are growing signs that the rise [...]
Three policy members again vote for interest rate rise
Minutes of the Bank of England’s May 4-5 meeting have been released today and have revealed the Monetary Policy Committee (MPC) again voted 6-3 to lift interest rates and 8-1 to restart the Bank’s quantitative easing (QE) scheme. Adam Posen, again, called for an injection of £50 billion via the QE scheme to boost the [...]
UK inflation soars to 2½-year high in April
The Office for National Statistics (ONS) today announced Consumer Price Inflation (CPI) surged to an annual rate of 4.5% in April – a level not seen since October 2008 and higher than forecasts of a rise to 4.2%. The surprise surge in inflation comes after the rate dropped to 4% in March and was attributed [...]
Persimmon reports rise in sales reservations
Persimmon, which is the UK’s largest housebuilder by market value, has today reported a 12% rise in sales reservations in the first three months compared with a year ago. Furthermore, the housebuilder said its order book had risen to £1.14 billion – up from the £565 million at the start of the year. The figures [...]
US housing starts pick up, permits down
The Commerce Department has today revealed US housing starts picked up in March but the recovery remains a long way off, according to analysts. Housing starts increased 7.2% to a seasonally adjusted annual rate of 549,000 units, while February’s figure was revised upwards to 512,000. In the meantime, applications for building permits, a barometer of [...]
