The UK government borrowed less than expected in June, reporting £16bn, £7.9bn less than forecast. This comes as new Prime Minister Andy Burnham announced plans to cut VAT on household electricity bills, funded by cancelling the digital ID program, signaling a new economic direction.
UK retail sales volumes rose 1.2% in May, exceeding analyst forecasts, driven by record hot weather boosting sales of fans and paddling pools, alongside strong online purchases and promotions. Supermarkets saw a slight decline.
UK retail sales volume rose 1.2% in May, exceeding analyst forecasts, due to record hot weather boosting sales of fans and pools, strong online performance, and promotions. Supermarkets were the only sector to decline.
UK public sector net borrowing hit £23.3bn in May, significantly higher than the £18.5bn forecast by economists. This surge, attributed partly to the economic impact of the Iran war and increased interest costs, presents fiscal challenges for potential Labour leader Andy Burnham.
UK job vacancies dropped to 707,000, the lowest in five years, as businesses reduced hiring. Unemployment eased slightly to 4.9%, but employment also fell, particularly in retail and hospitality, reflecting employer caution due to Middle East instability.
UK unemployment dropped to 4.9% and wage growth accelerated in April, exceeding forecasts. Despite this, employers are cautious about hiring permanent staff due to Middle East instability. The Bank of England faces pressure to raise interest rates.
UK inflation remained unexpectedly at 2.8% in May, with higher transport and fuel costs offset by slower food price rises. Economists had forecast a rise to 3%. The ONS reported the flatlining figure, which follows a decline in April, as various price movements balanced out.
UK public sector net borrowing hit £24.3bn in April, £4.9bn higher than last year and £3.4bn above forecasts. High inflation increased pension and benefit costs, while political uncertainty and global market jitters raised debt interest payments to a record £10.3bn for April.
UK retail sales volume fell 1.3% in April, the steepest monthly decline in a year, as motorists cut fuel purchases by over 10% after stocking up in March due to the Iran war. Excluding fuel, sales dropped 0.4%.
UK public sector net borrowing hit £24.3bn in April, £4.9bn higher than last year and £3.4bn above forecasts, driven by inflation-linked benefits and pensions. Rising debt interest payments and market jitters over the Iran war and political uncertainty are increasing borrowing costs.
UK net migration dropped by nearly 50% to 171,000 last year, the lowest since 2021, according to ONS figures. This decline is attributed to fewer non-EU nationals arriving for work. Asylum seeker numbers also fell, though refugee charities express concern over reduced safe routes.
UK inflation dropped to 2.8% in April, down from 3.3% in March, driven by a lower household energy price cap. While welcome, the slowdown may be temporary as fuel costs rise due to the Middle East conflict.
The UK economy grew 0.3% in March, exceeding expectations despite the Iran war, with broad-based services sector growth, though discretionary spending shows signs of decline.
The Office for National Statistics projects UK deaths will outnumber births every year from 2026, with population growth slowing significantly. The population is expected to rise by just 1.7 million between 2024-2034 (2.5% to 71 million), down from a previous projection of 3 million. Net migration has fallen 69% to 204,000, and the population is now expected to peak at 72.5 million in 2054 before declining. The pensionable population will rise to one-fifth of the total by 2034.
UK retail sales rose 0.7% in March, beating forecasts of 0.1%, driven by a 6.1% surge in fuel sales volumes as motorists panic-bought petrol and diesel amid the Iran conflict that pushed oil prices from $72.50 to $119.50 a barrel. Fuel sales value jumped 11.6%, the biggest monthly increase since November 2021. However, consumer confidence fell to -25 in April, the lowest since 2023, with the S&P Global PMI showing the biggest service sector cost jump since 1996.
Retail sales in Great Britain rose by 0.7% in March, driven by a 6.1% surge in fuel purchases as motorists reacted to price hikes caused by the conflict in the Middle East. Despite the boost, consumer confidence has dropped to its lowest level since 2023.
ONS says sales up by 0.7% in March, spurred by big rise in fuel purchases and sunny weather helping retailersBusiness live – latest updatesRetail sales in Great Britain rose last month due to motorists stocking up on fuel as they watched prices at the pump escalate rapidly because of the Iran war.The Office for National Statistics (ONS) said that the volume of retail sales rose 0.7% last month, well above analysts’ forecasts of just 0.1%, as the quantity of fuel bought hit the highest level since 2021. Continue reading...
UK inflation rose to 3.3% in March from 3% in February, driven by the biggest fuel price jump in over three years following the Iran war. Petrol prices rose 8.6p to 140.2p a litre and diesel jumped 17.6p to 158.7p, while food inflation climbed to 3.7%. The IMF warns Britain faces the sharpest growth slowdown in the G7, with inflation potentially peaking between 3.5-5% depending on Middle East developments.
UK inflation rose to 3.3% in March from 3% in February, matching economists' forecasts, as fuel prices surged following the outbreak of the US-Israeli war on Iran. The conflict has pushed global oil prices to around $100/barrel and threatened supplies through the Strait of Hormuz. The IMF warned Britain faces the sharpest growth slowdown and joint highest inflation in the G7 this year. The Bank of England held interest rates steady but cautioned that prolonged conflict could force borrowing cost increases.
UK unemployment unexpectedly fell to 4.9% in the three months to February from 5.2% in January, contrary to economist expectations. However, payroll data showed 11,000 fewer workers in March, and the EY Item Club forecasts unemployment will rise to 5.8% by mid-2027 due to Middle East conflict impacts, with nearly 250,000 additional job losses.
