UK Economy

UK retailers are shedding jobs at the fastest rate since the recession of 2009 in a sign slack is starting to build in labour force, however the Bank of England won't welcome findings price rises are expected to continue at an elevated price into May.

The Bank of England is expected to hike interest rates on a further three occasions according to market-based expectations following the release of inflation data that was stronger than analysts were expecting.

Sentiment among manufacturers deteriorated and output volumes fell moderately in the three months to May, according to the CBI's latest Industrial Trends Survey.

Headline UK inflation has fallen back sharply when compared to a month ago, but the fall was not great enough to undershoot market expectations, leaving the Pound supported.

UK Public Sector Net Borrowing experienced an unexpected rise in April, reaching £24.74 billion, up from £20.02 billion in March.

Holger Schmieding, Chief Economist at Berenberg Bank, believes that UK consumers can anticipate a more favourable year ahead as inflation subsides and real wage growth turns positive.

Rentola, a property rental site, has released recent data highlighting a 4.7% surge in rental prices within the private rental market across the United Kingdom (UK) over the past 12 months.

The UK economy contracted in March as the services sector recorded a slump amidst wet weather and ongoing public sector strikes and it will only be in the third quarter that economists expect to see a more notable recovery building.

The GfK Consumer Confidence Barometer posted a third consecutive monthly gain in April as it reached its highest level since February 2022.

The Pound to Euro exchange rate could struggle to hold a small weekly advance after UK retail sales figures disappointed.

The British Pound jumped against the Euro, Dollar and the majority of its peer currencies after a flush of stronger-than-expected UK inflaton figures that seal another interest rate hike at the Bank of England in May.

The UK reported another strong set of labour market statistics that will maintain pressure on the Bank of England to raise interest rates again in May, however, signs of a slowdown are becoming increasingly clear say some economists.

Searingly hot wage data will keep pressure on the Bank of England to raise interest rates further, which could in turn ensure the British Pound remains supported.

Economists at UK high street bank Barclays are forecasting inflation figures that will beat market expectations when released on Wednesday, however, Lloyds Bank's economists are looking for a "sharp decline."

The British Pound edged higher against the Euro and Dollar in the wake of UK economic growth data that confirms the UK economy is set to avoid recession in the first half of 2023.

The Bank of England's Chief Economist warned it could still be too soon for the Bank of England to pause its interest rate hiking cycle.

The UK's second-largest mortgage provider says UK house prices recorded a seventh consecutive monthly decline in March.

The UK economy grew in the final quarter of 2023 after the ONS revised higher its GDP figures, separate data meanwhile showed the UK's current account deficit shrank substantially in the quarter.

Business confidence is at a ten-month high, according to the Lloyds Bank business barometer.

The Bank of England's most recent interest rate hike could be the last as new survey data shows a sharp drop in inflation experienced at UK private sector businesses.