Weekly Digest – 21 August, 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
UK economy the fastest growing in the G7 in 2024, economists say
Britain’s economy is on track to enjoy the fastest growth of any G7 country in the first half of the year, analysts say. But experts said the same level of “gangbusters” growth is unlikely to be sustained in the second half of the year, and warned that the figures could convince the Bank of England to delay further cutting interest rates.
Inflation rises to 2.2% for first time this year in blow to interest rate cut next month
UK inflation rose to 2.2 per cent in July, marking the first increase this year and increasing the chances the Bank of England keep interest rates at the same level when they meet next month.
UK business output jumps to highest level in two years as further rate cuts expected
UK business output has jumped to its highest level in two years, according to a closely-watched survey, as the expectation of more interest rate cuts provide optimism for the coming months.
Government needs to invest to cement stronger economic growth
Commenting on ONS data that showed GDP rising by 0.6% in Quarter 2 2024, following growth of 0.7% in Quarter 1, Anna Leach, Chief Economist at the Institute of Directors, said: “The challenge for government is to firmly lift the UK’s growth performance out of the doldrums. There’re no quick fixes here: we’ll need the government to follow-through on its manifesto commitments to set and stick with long-term infrastructure investment plans.”
UK Government promises ‘new era’ after landmark talks with unions and businesses
Angela Rayner has hailed a “new era of partnership” after a landmark meeting between the Government, businesses and trade unions on Wednesday.
Further labour market cooling is welcome for business, but skills gaps remain a pressing issue
Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said: “Businesses will welcome continued signs of the labour market cooling, with vacancies decreasing on the quarter for the 25th consecutive period. “However, the availability of skills and labour remains a pressing issue for employers, and economic inactivity remains significantly higher than prior to the pandemic.
Growth experience: putting UK businesses under the microscope
Times may be challenging for many businesses at present but despite this UK businesses are showing remarkable resilience and ambition, according to a new research survey commissioned by HSBC UK and Raconteur.
UK economy grows strongly in Q2 but slowdown seen ahead
Britain’s economy recorded a second quarter of strong growth as it recovered from last year’s shallow recession but it lost momentum as it entered the second half of 2024, suggesting the Bank of England remains on course to cut interest rates again.
UK inflation picks up less than expected, boosting rate cut bets
British consumer price inflation increased for the first time this year in July, official figures showed on Wednesday, but the rise was smaller than expected as services prices – closely watched by the Bank of England – rose less rapidly.
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