UK interest rate expected to rise as economy grew by 0.4% in third quarter

British consumers are being put on notice for a rate hike from next week, as official figures show the economy expanding faster than anticipated in the three months to September. GDP grew by 0.4% in the third quarter of 2017 following expansion of 0.3% in the three months to June, according to the Office for National Statistics. City economists had forecast growth of 0.3%. The official figures come as the Bank of England prepares to hike interest rates for the first time in a decade, with the monetary policy committee likely to take them into account ahead of its decision on 2 November…

Bank of England under pressure for interest rate rise after ONS error

The UK’s official statistics agency has added to the pressure on the Bank of England over whether to raise interest rates as soon as next month after admitting it underestimated the pace of rising labour costs. The Office for National Statistics said on Monday it made a mistake in its original calculations for the growth in unit labour costs, which is the price paid by employers to produce a given amount of economic output…

Should interest rates go up as Brexit approaches?

The UK was the slowest-growing economy in the EU28 in the first quarter of 2017 and joint last in the second quarter. Pathetic growth of 0.5% for the first half of the year wins the UK the wooden spoon. The euro area grew 1.1% and the EU28 by 1.2% over the same period. Germany grew 1.3%; France 1%; Spain 1.7%; Sweden 2.3% and the Netherlands by 2.1%…

U.S. nonfarm payroll misses forecast, unemployment rate rises to 4.4%

The US economy recorded a sharp fall in job creation in August, raising questions over whether the Federal Reserve will raise interest rates before the end of the year. Economists had expected the US to add about 180,000 jobs over the month. But the latest figures from the Bureau of Labor Statistics showed a marked slowdown on the previous month, with a rise of 156,000 jobs…

UK consumer spending growth slumps to weakest rate in nearly three years

Spending by British consumers is growing at the weakest rate in almost three years, as households squeezed by rising prices tighten their belts. Household spending growth slowed to 0.1% in the three months to June, the Office for National Statistics said, the slowest rate of quarterly growth since the final three months of 2014. Business investment in the British economy showed no growth at all in the second quarter…

UK pay growth picks up as unemployment rate falls again

UK pay growth has started to edge up amid signs that the lowest level of unemployment since the mid 1970s may be increasing workers’ bargaining power.
Office for National Statistics figures showed that earnings growth in the three months to June was 2.1% higher than in the same period in 2016, and up from 2% in the three months to May and a recent low of 1.8% in April…

UK inflation expected to show prices rising at 2.7%, wages remaining flat

The squeeze on cash-strapped British households is expected to be illustrated this week byofficial figures likely to show that inflation picked up last month, outstripping growth in pay packets. City economists are forecasting that the consumer price index (CPI) rose at an annual rate of 2.7% in July, up from 2.6% in June…

U.S. job openings hit record high in June, outpacing hiring: JOLTS

WASHINGTON (Reuters) – U.S. job openings jumped to a record high in June, outpacing hiring, the latest indication that companies are having trouble finding qualified workers. The monthly Job Openings and Labor Turnover Survey, or JOLTS, released by the Labor Department on Tuesday also underscored labor market strength that will likely encourage the Federal Reserve to continue tightening monetary policy despite benign inflation and concerns about consumer spending…

UK consumer spending falls again in July amid rising living costs, Brexit fear

Britons are slashing spending on new clothes, cars and foreign holidays, according to new figures that underscore the effect on consumer confidence of rising living costs and the uncertainty surrounding Brexit. Spending fell for a third consecutive month in July, according to Visa’s consumer spending index, which it said was the longest-running slump since February 2013…

UK annual house price growth hits 4-year low

Annual house price growth has slowed to the lowest rate in four years, according to Britain’s biggest mortgage lender. Despite the slowdown, Halifax, which is owned by Lloyds Banking Group, said house price growth was still underpinned by low mortgage rates and a shortage of homes for sale, which have countered falling household incomes. The average price of a home rose to £219,266 in July, up 0.4% from June…

U.S. pending home sales bounce back in June, up 1.5%: NAR

WASHINGTON (Reuters) – Contracts to buy previously owned U.S. homes rebounded in June after three straight monthly declines, but the housing market remained constrained by a shortage of properties available for sale. Other data on Monday showed that factory activity in the Midwest slowed this month after hitting a three-year high in June, with manufacturers reporting declining orders…

Fed keeps rates unchanged, to start winding down bonds holdings ‘relatively soon’

WASHINGTON (Reuters) – The Federal Reserve kept interest rates unchanged on Wednesday and said it expected to start winding down its massive holdings of bonds “relatively soon” in a sign of confidence in the U.S. economy. The Fed kept its benchmark lending rate in a target range of 1.00 percent to 1.25 percent, as expected, […]

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