UK Economy

The British Pound will head into the weekend with some wind in its sails thanks to an above-consensus retail sales print from the ONS.

Growing confidence in the economy has driven another boosted overall UK consumer confidence in June, reports GfK.

The British Pound rose after the UK reported another strong services inflation print, although the headline CPI inflation rate hit the Bank of England's 2.0% target.

Reform UK has announced it would offer a tax cut in excess of £5000 for those earning more than £75000, but financial analysts say how it will be funded is unclear.

The UK economy flatlined in April but this won't upset a steady multi-month trend of recovery, and analysts say the next government will inherit a tailwind of growth.

The British Pound fell against the Euro and Dollar after the UK reported job losses and rising unemployment in its latest employment figures, although losses will be limited by still-high wage increases.

Business confidence in the UK reached an eight-and-a-half-year high in May, buoyed by rises in trading prospects and economic optimism.

New data from the CBI shows UK retail sales rose at their fastest pace since December 2022 in May.

Inflation for goods and food sold in UK shops has fallen back to what is considered to be normal levels by economists at the British Retail Consortium (BRC), but this won't be enough to convince the Bank of England it should cut interest rates next month.

The UK's most authoritative survey of consumer confidence continues to show an ongoing improvement, led by firming household finances and expectations for the economy.

The British Pound dipped against the Euro and Dollar after UK retail sales fell sharply in April, but markets look willing to look through the figures owing to the effect of incelement weather.

The Pound shed some of the previous day's gains after a survey of the UK economy showed a slowing in activity during May.

Economists at JP Morgan expect the Bank of England to cut interest rates in August, but details in the April inflation print warn of growing risks that a 2024 rate cut might not happen at all.

The odds of a June interest rate cut at the Bank of England have fallen to just 15% from above 50% in the days before Wednesday's UK inflation release.

The Pound to Euro exchange rate powered to its highest level since March at 1.1736 after UK inflation fell to 2.3% year-on-year in March, a figure that was higher than the market and the Bank of England were expecting.

According to a much-watched survey, UK manufacturers reported that output volumes rose in the three months to May, for the first time since November 2022.

A business "investment resurgence" is underway as UK companies look to invest in equipment, according to researchers at Deutsche Bank.

UK wage pressures are increasing and the official unemployment figures are likely too pessimistic. These are some of the reactions to the UK's latest labour market report.

The British Pound firmed following the release of a surprisingly strong UK wage report that will concern policymakers at the Bank of England.

The British Pound has rallied against the Euro, Dollar and other currencies after UK economic growth rebounded strongly in the first quarter.