Day: November 15, 2024

Latest UK GDP growth report shows UK grew by just 0.1% in July-September, a slowdown on the first half of the year

* Few expected Britain to boom but the GDP figures will worry the Treasury
* RFK Jr condemned as ‘clear and present danger’ after Trump nomination
* Bank of England governor says Brexit has undermined UK economy

Luke Bartholomew, deputy chief economist at investment group abrdn, also points the finger at the budget:

“The economy was always going to slow from the famously “gangbusters” pace of the first half of this year, but the extent of the slowdown is a bit more pronounced than expected.

With activity growth in September being reported as particularly weak, it is plausible that some of slowing is the result of elevated uncertainty at that time, as firms and households speculated about possible tax changes ahead of the Budget. That said, it is also possible that this just represents normal monthly volatility rather than anything more fundamental.

“The UK economy stalled over the third quarter. Uncertainty ahead of the Budget probably played a big part, with firms widely reporting a slow-down in decision making. Hopefully this will prove to be a blip. We still expect the economy to return to a path of modest growth in the year ahead. But downside risks to the outlook have increased.

“The Budget has set off warning lights for business. The hike in National Insurance Contributions alongside other increases to employers’ cost base will add to the burden on business. And it is expected to trigger a more cautious approach to pay, hiring and investment as companies work through what it means for their own budgets. Continue reading…
http://dlvr.it/TGBsL6

UK economy at near-standstill as uncertainty over the budget and high interest rates weighed on consumer spending

In news that will disappoint those of you who enjoy a Liberal Democrat stunt, PA has just reported that Ed Davey will not, as was planned, be taking a bus-driving lesson at a depot in Oxfordshire, due to logistical issues. Instead he will be visiting visit high-street businesses.

It is part of a campaign by the Liberal Democrats to get Labour to keep the bus fare price cap at £2 in England when it extends the scheme into next year.

The fare cap increase is like a bus tax for people across the country, impacting bus users and commuters already struggling to make ends meet. MPs must be given a say on this bus fare hike on behalf of their constituents.

Our communities have already paid too high a price for years of Conservative neglect and incompetence. This bus fare hike will hit cherished local businesses and high streets, many of which are already struggling.

Uncertainty around Labour’s first budget and high interest rates played their part, but [the GDP figures are] still a blow for Rachel Reeves, as [it] underlines difficulty of reaching her ambitious growth target.

Some in Labour want to recalibrate economic focus away from growth and towards cost of living ie “will people feel better off by time of next election?” Continue reading…
http://dlvr.it/TGBsKm