UK Economics Update Is tourism helping with rebalancing? Tourism is an important but often overlooked source of UK export earnings, with overseas visitors spending over £18bn annually in the UK. Increasing numbers of visitors from fast-growing emerging... 14th May 2013 · 1 min read
UK Economics Update Has the economy turned a corner? There has been a fair bit of excitement about the renewed signs of life in the economy. We would be wary of getting too absorbed in the ebb and flow of the data. Indeed, it is still hard to see what... 13th May 2013 · 1 min read
UK Economics Update Waiting for Carney The Monetary Policy Committee’s continued inaction shows it has limited appetite for helping the economy to break out of its current insipid state. Upon his arrival in July, Mark Carney may have his... 9th May 2013 · 1 min read
UK Economics Update How much will auto-enrolment cost companies? Companies have been reluctant to spend so far in this recovery. And legislation that is being phased in which requires them to contribute to their employees’ pensions could restrain them further... 1st May 2013 · 1 min read
UK Economics Update Monetary Indicators Monitor (Apr.) The latest money and lending figures contained a few positive signs that the Funding for Lending Scheme (FLS) is having a positive impact on borrowing, including the first rise in lending to SMEs in... 30th April 2013 · 1 min read
UK Economics Update Household Borrowing Monitor (Mar.) March’s household borrowing figures saw a continuation of the modest expansion of credit seen in recent months. But there remains little sign of any move back to the pace of borrowing seen prior to... 30th April 2013 · 1 min read
UK Economics Update Limited reforms to FLS don't transform the lending outlook Today’s modifications to the Funding for Lending Scheme should make it a more effective tool in reducing the cost of loans for small companies. But with banks undercapitalised and the demand for... 24th April 2013 · 1 min read
UK Economics Update Online sales growth offers some retail comfort In the subdued retail environment of recent years, one bright spot has been rapid growth in online sales. Even in the difficult conditions in 2012, internet purchases grew by 15%. With 90% of sales... 10th April 2013 · 1 min read
UK Economics Update Fiscal squeeze temporarily eases for households Given the controversy about the tax and benefit changes introduced in recent days, the point that these measures are in aggregate putting some cash in households’ pockets has been overlooked. That... 9th April 2013 · 1 min read
UK Economics Update MPC sits on its hands again Although the Monetary Policy Committee left policy on hold again today, we suspect that the decision was still a close one. And while the chances of more asset purchases in May have perhaps declined... 4th April 2013 · 1 min read
UK Economics Update 'Zombie' companies may not be dead yet There is growing talk about the ‘zombification’ of the UK economy, with unviable companies locking up resources and impeding bank lending to new firms. But an economic recovery could well reveal... 3rd April 2013 · 1 min read
UK Economics Update Monetary Indicators Monitor (Mar. 13) The slower growth in the broad money supply in February suggests that the previous month’s pick-up was just a blip. Meanwhile, bank lending to the private sector is still flat-lining, adding to the... 2nd April 2013 · 1 min read
UK Economics Update Household Borrowing Monitor (Feb.) February’s household borrowing figures suggested that, while mortgage lending continues to struggle, the recent signs of life evident in the consumer sector may be translating into a pick-up in... 2nd April 2013 · 1 min read
UK Economics Update Rise in spending fuelled by drop in saving The gentle recovery in household spending continued at the end of last year. However, the fact that households had to save less in the fourth quarter in order to raise their spending suggested that... 27th March 2013 · 1 min read
UK Economics Update Is the recovery stronger than it looks? Those inclined to see the glass half-full have pointed out that the recovery looks healthier once you strip out the sectors that have had a disproportionately adverse effect on growth recently... 27th March 2013 · 1 min read
UK Economics Update Is the record current account deficit a cause for concern? Tomorrow’s current account figures are likely to suggest that the hoped for rebalancing in the economy is still not happening and could put some renewed downward pressure on the pound. 26th March 2013 · 1 min read
