#business Economic data to lay bare challenge facing Government

#business Economic data to lay bare challenge facing Government

#enterprise Economic data to lay bare challenge facing Government

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Economic data to lay bare challenge facing Government – amid predictions that financial institution vacation for Queen’s funeral will knock £2bn off GDP

  • Office for National Statistics set to report inflation stays at 40-year excessive 
  • Liz Truss addressing value of dwelling squeeze with £150bn power invoice freeze
  • Figures on wages and jobs, retail gross sales and GDP additionally set to be printed

A raft of financial data will this week lay bare the challenge facing Liz Truss’s authorities – amid predictions that the financial institution vacation for the Queen’s funeral will knock £2billion off GDP. 

Truss has already acted to handle the price of dwelling squeeze by asserting a £150billion power invoice freeze. 

That will ease the strain on households and would possibly even avert a recession, some declare. 

Trouble ahead: Liz Truss has already acted to address the cost of living squeeze by announcing a £150billion energy bill freeze

Trouble forward: Liz Truss has already acted to handle the price of dwelling squeeze by asserting a £150billion power invoice freeze

But shopper ache will probably be in deal with Wednesday when the Office for National Statistics is predicted to report that inflation stays at a 40-year excessive – rising to 10.2 per cent in August from 10.1 per cent in July. 

Figures on wages and jobs, retail gross sales and GDP may also be printed this week. 

Next Monday’s financial institution vacation might current a brand new snag for the financial system. Simon French, at Panmure Gordon, informed The Sunday Times that earlier one-off financial institution holidays had lowered output by up to £2billion. 

Panmure Gordon thinks it is going to imply that, fairly than rising by 0.1 per cent, the financial system will shrink by 0.1 per cent within the present third quarter. 

However, consultants at Investec mentioned the Queen’s Platinum Jubilee Bank Holiday had a much less extreme financial impression. 

French mentioned: ‘There are few parallels. We might not merely be speaking about an additional financial institution vacation. There might be a chronic interval of nationwide mourning.’ 

Some companies closed for a day after the Queen’s dying final week whereas sport and leisure occasions had been affected. The contemporary dent to financial exercise threatens to create a renewed impediment to an financial system already hit by the price of dwelling squeeze. 

Pay is falling at a document charge in actual phrases – as a result of whereas wage packets could also be rising they nonetheless lag behind costs. 

Separate labour market figures tomorrow will present whether or not the hole has widened even additional. 

But Truss’s big-spending intervention ought to imply the ache begins to abate as inflation eases. Some economists suppose it might have peaked. 

Retail gross sales data due on Friday is predicted to present a fall of 0.6 per cent in August. 

Separately, GDP figures for July, printed in the present day, are anticipated to paint a optimistic image, with the financial system rising by 0.4 per cent. 

That comes after a 0.6 per cent contraction in June when the four-day Platinum Jubilee Bank Holiday weekend took its toll.

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