As the data points to the initial post-Covid economic liftoff continuing, attention has turned squarely to limiting further economic fallout and encouraging the recovery. Last week Chancellor Sunak targeted support at the jobs market. This week European leaders meet to approve a proposed €750bn coronavirus recovery package. Expect plenty more in the coming months as the scale of the recovery challenge becomes ever more apparent.Continue reading
Chief Economist’s Weekly Brief – The fall
UK businesses appear in decent shape. Turnover is up as are Corporation Tax receipts. Yet sterling has lost roughly one-tenth of its value since June and that’s raising input costs and squeezing profits. A long summer of falling costs boosting profits is coming to an end. Continue reading
Chief Economist’s Weekly Brief – Wobbles
Last week’s UK economic news was filled with little wobbles. First, there were signs that the UK’s labour market may be finally cooling. Second, UK retailers had a very poor March. Third, the Chancellor missed his borrowing targets for the last fiscal year. All small misses, but misses nonetheless.