UK Economics Update Government housing measures contain no miracle cure The Government today announced a number of measures designed to “meet current challenges in the housing market”. While some of the measures will help to ease the hardship faced by a few of the... 2nd September 2008 · 1 min read
UK Economics Update Household bad debt on the rise again Household bad debt appears to have embarked on an upward trend at the start of this year, with borrowers starting to buckle under the pressure of the credit crunch. With unemployment now rising, debt... 1st September 2008 · 1 min read
UK Economics Update UK economy to contract in 2009 Recent news on the UK economy, coupled with the growing danger of a fall in bank lending, has left us even more concerned over the likely severity of the economic downturn. We now expect GDP to fall... 26th August 2008 · 1 min read
UK Economics Update Weaker euro-zone economy to dent UK exports The recent weakening in the outlook for the euro-zone economy – the destination for around half of the UK’s exports – suggests that there is a risk that activity in the UK will be even weaker than the... 14th August 2008 · 1 min read
UK Economics Update Sterling's fundamental adjustment has further to go The latest drop in the sterling exchange rate has been largely driven by short-term movements in interest rate expectations. But we see the fall as part of a long overdue adjustment which has... 14th August 2008 · 1 min read
UK Economics Update The dent to the labour market from falling house prices There are a number of ways in which a weakening housing market could affect the labour market adversely, potentially sparking a vicious circle of falling house prices and rising unemployment. 13th August 2008 · 1 min read
UK Economics Update Lower food prices will help to drag inflation down next year The sharp fall in the oil price in recent weeks has overshadowed the impact that the recent easing in global wholesale food prices is likely to have on inflation. While the lower level of wholesale... 8th August 2008 · 1 min read
UK Economics Update Lower food prices will help to drag inflation down next year The sharp fall in the oil price in recent weeks has overshadowed the impact that the recent easing in global wholesale food prices is likely to have on inflation. While the lower level of wholesale... 8th August 2008 · 1 min read
UK Economics Update Recession risks keep MPC on hold The growing likelihood of a recession, plus the recent falls in oil and commodity prices, kept the MPC’s finger off the interest rate trigger for another month. We continue to expect rates to be... 7th August 2008 · 1 min read
UK Economics Update Recession risks keep MPC on hold The growing likelihood of a recession, plus the recent falls in oil and commodity prices, kept the MPC’s finger off the interest rate trigger for another month. We continue to expect rates to be... 7th August 2008 · 1 min read
UK Economics Update Productivity slowdown won’t stop employment falling The recession that looks likely does not have to be accompanied by falling employment - firms could just let productivity (i.e. output per worker) suffer instead. Indeed, employers have been reluctant... 6th August 2008 · 1 min read
UK Economics Update Productivity slowdown won’t stop employment falling The recession that looks likely does not have to be accompanied by falling employment - firms could just let productivity (i.e. output per worker) suffer instead. Indeed, employers have been reluctant... 6th August 2008 · 1 min read
UK Economics Update Northern Rock injection yet another fiscal worry The Government’s decision to inject extra capital into Northern Rock means that UK taxpayers will become shareholders in a troubled mortgage lender during what looks set to be the severest downturn in... 5th August 2008 · 1 min read
UK Economics Update Utility hikes may mean that inflation peaks earlier The news that British Gas today became the second utility supplier to raise its prices means that inflation is likely to rise further and faster than we previously expected. But the silver lining is... 30th July 2008 · 1 min read
UK Economics Update Re-emergence of pension fund deficits threatens investment Recent financial market developments have pushed corporate pension funds back into deficit, further constraining the resources available for firms to invest. 30th July 2008 · 1 min read
