UK Economy

UK CPI inflation hits 9.4% in June

This morning’s CPI inflation release at 9.4% in June, up from 9.1% in May, will encourage the view that the peak will be close to 11-12% during the winter as energy prices rise. Also, the UK...

RICS survey points to softening in UK housing demand

This morning’s Royal Institution of Chartered Surveyors (RICS) survey for June shows the sixth-sharpest monthly decline in new buyer enquiries since the financial crisis of 2008/09....

Bank of England takes sanguine view of UK’s debt vulnerabilities

Yesterday (July 5th), the Bank of England’s Financial Policy Committee (FPC) decided to press on with plans to raise the counter-cyclical capital buffer (CCyB) from 1% to 2%, effective...

UK housing market activity still holding up better than expected

Bank of England data showing that mortgage approvals equalled 66,200 and net mortgage lending was £7.4bn in May suggest that activity in the housing market is still holding up better...

Bank of England could surprise with 50bps hike

Markets have taken a surprisingly benign view that the Bank of England (BOE) will stick to another 25bps hike to 1.25% when the June policy meeting concludes tomorrow – pricing in little...

UK GDP contracts by 0.3% in April

This morning’s UK GDP data showing a 0.3% contraction in April is entirely accounted for by the end of the NHS’s test-and-trace activity. However, with both construction (-0.4%) and...

RICS survey points to softening UK housing market

This morning’s Royal Institution of Chartered Surveyors (RICS) survey points to a definite softening of conditions in the UK housing market in May, but not a rapid deterioration. This...

Last innings for the UK housing market?

This morning’s UK Rightmove asking price data show another enormous 2.1% rise in May to £367,500 with annual inflation at 10.2%. However, Rightmove did warn that UK house price inflation...

S&P 500 sees enormous 4% drop

Stock index futures point to declines of 0.5-1% for European markets this morning after the enormous 4% decline in the S&P 500 yesterday (May 18th). This followed disappointing results...

UK CPI inflation rises to 9% in April

This morning’s UK CPI release shows inflation rising to a 40-year high of 9% in April. Although the out-turn is in line with expectations, the UK now has the sharpest CPI inflation rate in...