Page 3 - Uk Economy

London's FTSE 100 falls after US recession fears spark global sell-off

Friday's data showed a sharp slowdown in US job growth, raising fears of deterioration in American labour market and potential recession, prompting bets for a half-point interest rate cut in September

Nation 'broke & broken', says new UK govt as it plans to repair economy

Britain's new left-leaning government said Sunday that the nation is broke and broken, blaming the situation on its predecessors ahead of a major speech on the state of the public finances that is widely expected to lay the groundwork for higher taxes. In a sweeping assessment three weeks after taking power, Prime Minister Keir Starmer's office professed shock at the situation they inherited after 14 years of Conservative Party rule, while releasing a department-by-department analysis of the perceived failures of the previous government. The critique comes a day before Treasury chief Rachel Reeves is expected to outline a 20-billion-pound ($26 billion) shortfall in public finances during a speech to the House of Commons. We will not shy away from being honest with the public about the reality of what we have inherited," Pat McFadden, a senior member of the new Cabinet, said in a statement. We are calling time on the false promises that British people have had to put up with and we .

Here's how Taylor Swift's 'Eras Tour' is boosting the British economy

Singer Taylor Swift's concerts witnessed a lightning-fast sell-out, with ticket sales soaring within minutes of their release

Ex-Fed chair finds 'shortcomings' in Bank of England's economic forecasting

A review of the Bank of England's economic forecasting that was published on Friday and undertaken by Ben Bernanke, the former chair of the US Federal Reserve, has found significant shortcomings that should be addressed to better inform future interest rate decisions. Following widespread criticism about the Bank of England's forecasts, Bernanke was tasked last year to review the forecasting models. Though noting that all central banks have had problems over the past few years as a result of a series of economic shocks, notably the coronavirus pandemic and the cost-of-living crisis heightened by Russia's invasion of Ukraine, Bernanke said the Bank of England's issues were made worse by out-of-date software that had not been properly maintained. The review said that insufficient resources have been devoted to ensuring that the software and models underlying the forecast are adequately maintained". Bernanke, who led the Fed between 2006 and 2014, a period that included the global ...

British businesses keep up recovery but prices still a worry, shows PMI

Closely watched by the BoE ahead of its 1200 GMT interest rate decision, the S&P Global Composite Purchasing Managers' Index (PMI) inched down to 52.9 in March from 53.0 in February

UK economy puts recession behind it but price pressures rise: PMI survey

That is likely to be a relief for Prime Minister Rishi Sunak who has had to endure taunts of "Rishi's recession" from the opposition Labour Party which is riding high in opinion polls

UK economy slips into recession; Japan loses third-largest economy title

Rishi Sunak, who came into power in October 2022, had made five major promises after assuming office, including taming down inflation and growing the United Kingdom economy

UK inflation steady at 4% in Jan as lower food prices offset energy costs

Inflation in the U.K. held steady at 4% in January as lower food prices helped offset an increase in energy costs, official figures showed Wednesday. The reading was better than expected as most economists expected inflation to rise modestly to around 4.2%. The Office for National Statistics said the monthly drop in food prices of 0.4% was the first since September 2021. Still, inflation remains double the Bank of England's target rate of 2%. The Bank of England has managed to get inflation down from a four-decade high of more than 11%, by raising its main interest rate aggressively from near zero to 5.25%. It has held the rate there since August and there are hopes that cuts may soon be on the agenda. Inflation was first stoked by supply chain issues during the coronavirus pandemic and then Russia's full-scale invasion of Ukraine, which pushed up food and energy costs. While the interest rate increases have helped in the battle against inflation, the squeeze on consumer spending

Bank of England keeps rates unchanged at 5.25%, may cut if inflation falls

The pound erased earlier losses and investors trimmed bets on the extent of Bank Rate cuts but still saw four reductions in 2024, a view that Bailey said he did not want to challenge

Qatar's credit rating upgraded by Moody's to match France, UAE, overtake UK

The rating company also changed Qatar's outlook from positive to stable, meaning another upgrade is unlikely in the short term

UK economy to hit 2% inflation target by spring in upgraded outlook

A 1% cut in the basic rate of income tax in April would add another £4 billion this year, and a halving of the inheritance tax rate to 20% would be worth close to £1 billion more for 2024

UK recession might be under way after economy shrinks in Q3: Report

Q2 output also cut to 0.0% from 0.2% growth

UK economy shrinks in Q3 as GDP contracts 0.1%, shows signs of recession

The medium-term outlook for the UK economy is far more optimistic than these numbers suggest," Hunt said in a statement

Pound rises against euro as UK composite PMI hits a six-month high

Markets expect the BoE to start cutting interest rates from May, slightly later than the European Central Bank (ECB) or the Fed, which analysts say could support the pound

Growth slows down in three of five advanced economies; US, UK exceptions

China, Japan, Germany showed weaker rate; for UK, it remained the same

Economy has lost momentum: European Commission lowers growth outlook

The European Union's executive commission lowered its growth forecast for this year and next, saying the economy has lost momentum in 2023 as inflation weighs on consumer spending and higher central bank interest rates deter borrowing for purchases and investment. The outlook for this year was lowered to 0.6% from 0.8% for the 20 countries that use the euro currency, and to 1.2% from 1.3% for next year, the commission said Wednesday in its autumn economic forecast, which revised figures from its previous forecast in September. Even that modest growth outlook is exposed to risk from Russia's ongoing war against Ukraine and the Israel-Hamas war in Gaza. So far, the conflict has not interfered with oil supplies from Mideast producers such as Saudi Arabia and the United Arab Emirates, but there is a risk of disruptions to energy supplies that could potentially have a significant impact on prices and global growth. While growth remains weak, unemployment remains near record lows and grow

UK's stagnating economy fails to grow but sidesteps start of a recession

In the month of September alone, Britain's economy grew by 0.2% from August when growth was revised down to 0.1% from 0.2%

British economy flatlines in Jul-Sep quarter ahead of budget statement

The British economy flatlined in the third quarter of the year, official figures showed Friday ahead of a budget statement from the government later this month. The Office for National Statistics said growth in the July-to-September period was zero compared to the previous three-months. All sectors, such as manufacturing and construction, broadly showed the same subdued picture. Despite the uninspiring headline figure, the quarterly outcome was slightly ahead of analysts' expectations for a modest decline in output. The British economy, like many others particularly in the world, is struggling to grow in the face of higher interest rates, which are aimed at taming inflation. Last week, the Bank of England kept its main interest rate unchanged at the 15-year high of 5.25% and indicated that borrowing costs will likely remain at these sort of elevated levels for a while. The Bank of England, like other central banks, raised interest rates aggressively from near zero as it sought to

Inflation in UK unchanged at 6.7% in Sept, still way more than BoE's target

Inflation in the UK held steady at 6.7 per cent in September as easing food and drink price rises were offset by higher prices at the pump for motorists, official figures showed Wednesday. The flat reading reported by the Office for National Statistics was disappointing as most economists had predicted another, albeit modest, fall. It means that the UK's inflation rate remains more than three times higher than the Bank of England's target rate of 2 per cent. The bank, though, is not expected to raise interest rates at its next policy meeting in early November, opting instead to keep its main borrowing rate unchanged at the 15-year high of 5.25 per cent. Last month, the bank brought an end to nearly two years of interest rate rises as inflation fell from multi-decade highs above 11 per cent. Most economists expect a sizeable decline in inflation next month. Progress on falling inflation has stalled, for one month at least," said James Smith, research director at the Resolution ...

UK recession risk deepens but consumers stay unfazed, factory output falls

A business survey, which the BoE factored into its decision to keep rates on hold, showed companies endured a much tougher September than feared, marked by growing unemployment