Left turn?

If we consider politics over the past 10 years or so, what is clear is that there was a distinct step to the right in the UK, in the US and elsewhere in the world; the consensus around dealing with the fall-out of the financial crisis taking us in that direction. But there is evidence that we are now set for something of a left turn. And a look at the policies coming from the main UK political parties ahead of the General Election gives credence to this view.

AdobeStock_230244356.jpeg Continue reading

Two Up Two Down: Latest housing market statistics

Today’s batch of housing market figures for the third quarter could be summed up as “two up two down”. Two indicators (residential property prices and house completions) posted year-on-year growth.  Meanwhile housing starts and the number of residential property transactions are on the wane. 

Generation rent. House prices are always one of the most closely watched economic indicators by the general public or at least homeowners and potential first-time buyers.   Although the rise of the private rented sector over the last decade means for an increasing share of society, rental prices are more relevant than house prices. Homeownership is not on the radar for as many under 40s as it once was.

1.png Continue reading

Has Northern Ireland gone selfie mad?

Northern Ireland’s Labour Force Survey (LFS) churned out more record highs and lows of the positive variety in Q3 2019.  However, looking through all the statistical noise there are still signs that suggest the labour market cycle has turned. A surge in self-employment has been accompanied by a reduction in the number of ‘employees’ working. Meanwhile the total number of hours worked and average hours worked has eased back from its highs earlier in the year. Given the marked deterioration in business conditions in Q3 and Q4 it is expected that this will increasingly become evident within the labour market in the coming quarters. Q2 2019 is still likely to have represented the peak in the total number of employee jobs as measured in the Quarterly Employment Survey.

AdobeStock_229457325.jpeg Continue reading

Chief Economist’s Weekly Brief – Draghi’s farewell

After eight years at the helm President Draghi is bowing out. He will forever be remembered for three words – “whatever it takes”. He certainly played an outsized role in salvaging the single-currency project in its darkest days. It’s now over to Lagarde to pick-up the challenges – convincing reluctant eurozone governments to use fiscal space and pushing inflation back up to target.

euro-1431347_1920.jpg Continue reading

Chief Economist’s Weekly Brief – Ratcheting up

US/China trade tensions are intensifying. The Chinese authorities announced $75bn 5-10% tariffs on US imports, targeting cars, oil and soya. US President Trump retaliated, unveiling further tariff rises though his stance at the latest G7 meeting was conciliatory. Meanwhile, Federal Reserve Chair Jay Powell hinted at another rate cut soon.

ratchet-3500129_1920.jpg Continue reading

Subsidising by numbers

Imagine you are a Dragons’ Den judge. The CEO of (a fictional) ‘Grey Enterprises’ is pitching for investment to enable further expansion in its consumer goods business. The firm’s customer base (the over 65s) has grown by one-quarter over the last decade with 1 in 6 of the Northern Ireland population using the product.

AdobeStock_242998345.jpeg Continue reading

Have consumers priced in Brexit?

There is an annual cycle in consumer finances. January, February and March are generally lean months for spending as wallets and purses recover from Christmas. The second quarter of the year sees preparation for the holidays, before a post-summer recovery. Spending then accelerates again, due to the end of year festivities, before the cycle repeats.

AdobeStock_160632424 SMALL.jpg Continue reading

Chief Economist’s Weekly Brief – Cliff edge deferred

welder-673559_1920
The EU granted PM Theresa May an extension to Brexit to May 22nd, conditional on Parliament passing the Withdrawal Agreement – a dim prospect. Another rejection would mean the Commons is given up to April 12th  to propose alternatives. The indicative votes this week might offer some clues on what alternatives Parliament could support.

Continue reading

Last orders for record labour market highs?

Labour market stats Q42018

The labour market continues to be a source of positivity amidst the Brexit gloom. Northern Ireland’s employment rate – the proportion of people of 16-64 year olds working – hit a record high of 70.9%. Meanwhile the headline unemployment rate in the three-months to January 2019 is an eye-catching 3.5%. However, amongst the raft of labour market statistics the most meaningful jobs barometer was the Quarterly Employment Survey for Q4 2018. Continue reading