The UK recovery remains imbalanced. Consumer spending rebounded in Q2 but investment weakened. Ongoing Brexit uncertainty continues to overhang the corporate sector.
The squeeze on living standards hasn’t gone away
In recent months an emerging narrative has been that the squeeze on UK living standards has relaxed or even ended. This refers to the pace of annual earnings growth overtaking inflation. However, real earnings growth remains modest at best. Meanwhile the squeeze continues for public sector workers on pay caps (1% p.a.) and households experiencing a multi-year freeze on working-age welfare benefits (until 2020). In light of the fact that the price of necessities including utility bills, motoring costs, rates bills and private sector rents (for Northern Ireland) are all rising at substantial rates and above the headline rate of inflation, it is premature to talk of a meaningful end to the cost of living squeeze. Continue reading
When it comes to the labour market statistics, Northern Ireland’s Economy Minister couldn’t be getting off to a better start. Continue reading