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
UK Economics Update Bad weather could tip economy into triple-dip recession Although the current spell of cold and snowy weather is unlikely to have lasting economic consequences, a look back to previous cold snaps suggests that it might just be enough to make the difference... 25th March 2013 · 1 min read
UK Economics Update Forward-looking guidance unlikely to save the day Following the rather vague change to the MPC’s remit announced in yesterday’s Budget, the ball is now back in the Bank of England’s court. But even if the Monetary Policy Committee decides to follow... 21st March 2013 · 1 min read
UK Economics Update Budget measures amount to small beer for consumers While yesterday’s Budget resulted in a net giveaway to consumers, it did little to reduce the blow to household incomes which will be inflicted by further waves of austerity in the coming years. 21st March 2013 · 1 min read
