UK Economics Focus Employment growth to pick up as profits recover A variety of factors has been put forward to explain the recent weakness of employment growth. But the only one that seems to stand up to scrutiny is the recent squeeze on firms’ profits growth from... 12th July 2007 · 1 min read
UK Economics Focus Record low saving threatens spending outlook With household income recently falling in real terms, consumers have increased their spending at reasonable rates only by running their saving rate down to a record low. But this strategy does not... 4th July 2007 · 1 min read
UK Economics Focus Has the wages threat passed? The threat of a sharp rise in wages growth following the rise in consumer price inflation seems to have passed. A bigger risk now is that a tightening labour market pushes up wages growth instead. But... 26th June 2007 · 1 min read
UK Economics Focus Has the wages threat passed? The threat of a sharp rise in wages growth following the rise in consumer price inflation seems to have passed. A bigger risk now is that a tightening labour market pushes up wages growth instead. But... 26th June 2007 · 1 min read
UK Economics Focus Pricing power - passing or permanent? The rise in firms’ pricing power has climbed to the top of the MPC’s list of inflation worries. We think it reflects the transitory influences of previous cost increases and strong demand, rather than... 13th June 2007 · 1 min read
UK Economics Focus Influx of migrants to widen current account deficit National Statistics’ estimates of the amount of money sent abroad by migrants, or “remittances”, take no account of the large rise in the size of the UK’s migrant population in recent years and are... 6th June 2007 · 1 min read
UK Economics Focus Firms better placed than consumers to withstand rate rises Debt servicing costs in the corporate sector are even closer to their early 1990s highs than those in the household sector. But there are a number of reasons why higher interest rates and therefore... 24th May 2007 · 1 min read
UK Economics Focus Have fixed rate mortgages changed the housing market? The popularity of fixed rate mortgages in recent years appears to have dampened the sensitivity of the housing market to rising interest rates. That is not to say that higher interest rates will not... 17th May 2007 · 1 min read
UK Economics Focus Have fixed rate mortgages changed the housing market? The popularity of fixed rate mortgages in recent years appears to have dampened the sensitivity of the housing market to rising interest rates. That is not to say that higher interest rates will not... 17th May 2007 · 1 min read
UK Economics Focus UK sub-prime mortgage lending: living on borrowed time? Unfolding developments in the US sub-prime mortgage market make uncomfortable reading. But do developments in the US have any implications for the UK mortgage market, which has also seen strong growth... 28th March 2007 · 1 min read
UK Economics Focus UK sub-prime mortgage lending: living on borrowed time? Unfolding developments in the US sub-prime mortgage market make uncomfortable reading. But do developments in the US have any implications for the UK mortgage market, which has also seen strong growth... 28th March 2007 · 1 min read
UK Economics Focus UK Budget 2007 - Robbing Peter to pay Peter This was a bold, and indeed a big, Budget. But its impact on the economy will be minimal. It was designed to make a political, rather than an economic, impact, and in that regard it was brilliantly... 21st March 2007 · 1 min read
UK Economics Focus UK Budget 2007 - Robbing Peter to pay Peter This was a bold, and indeed a big, Budget. But its impact on the economy will be minimal. It was designed to make a political, rather than an economic, impact, and in that regard it was brilliantly... 21st March 2007 · 1 min read
UK Economics Focus Falling inflation to offset drag on spending from rate rises The outlook for consumer spending this year hinges on which proves to be dominant - higher interest rates or falling inflation. The boost to real income growth from falling inflation should offset the... 20th March 2007 · 1 min read
UK Economics Focus Falling inflation to offset drag on spending from rate rises The outlook for consumer spending this year hinges on which proves to be dominant - higher interest rates or falling inflation. The boost to real income growth from falling inflation should offset the... 20th March 2007 · 1 min read
