Chief Economist’s Weekly Briefing – Gently does it

pound-414418_1280 (3).jpgDebt looms large not just in the UK but across major economies. So rate hikes have to proceed very gently.

The producers. A decent August for UK production as output rose by 0.2% on the month. If it manages the same in September then production should rise by 0.9% in Q3, about treble its recent pace. Manufacturing is enjoying a mini-renaissance. Output rose 0.4% on the month and turnover is up 6% on the year. It’s an equal opportunity buoyancy too, benefiting common-or garden manufacturers as well as the high-end techie stuff. What’s not to like? Continue reading

Finance Minister pulls biggest tax raising lever

rates

Northern Ireland has the lowest taxes in the UK and the highest public expenditure per head of any region. Together, these form Northern Ireland’s fiscal USP (unique selling point). This approach to public finances, however, has arguably not served the economy well (and is unsustainable – read my previous article on the subject).  Furthermore, given the ongoing austerity agenda, Stormont will have to redouble its efforts in making public expenditure efficiencies and increasing revenue. Continue reading