Look at the economy, had to fight to the eye in several tense moments last week, especially during the Thursday when the world threatened to collapse of the stock market and interest rates UK gilts fell to their lowest level in over a century .
While Human Economy gilts normally encourage low – the latter being a good deal for taxpayers – in this case, the champagne must be kept on ice. The low rates are a sign of panic among investors, who store the money where they can feel confident that you will not lose what you put in. Gold hit a record.
The only glimmer of hope for news of the week was an improvement in public sector finances. The increase in VAT, which affects consumers in the pocket, offset lower tax revenues. But the independent body that advises the Treasury warned that if the country’s banks continue to be profitable, and production of oil and gas is low, the deficit for the year will be higher than expected in March last year .
UK Economy August
The most important economic event of the week was the latest employment data. Not only the number of those seeking unemployment benefits rose for the fifth consecutive month, but did it twice more than expected. Particularly affected are women working in the public sector. Layoffs female in the second quarter increased 56 percent in the first quarter. In addition, the overall unemployment rate rose for the first time in months, and officially, about 2.5 million people in search of work. A record number of part-time work because they can not work full time.
Wage growth, with the exception of business and financial services, is less than 2 percent – a figure that covers 80 percent of workers in the nation. No wonder the official retail sales in July showed they were slow. The Bank of England, officers discovered that retailers across the country are in constant need to offer discounts to attract customers. But there are signs that companies inclined toward increasing minimum price sensitive. Pure Fitness, which offers low-cost memberships, plans to double its number of outlets. Viewers car dealership, said car owners are below cash boost sales of spare parts.
More job losses to come. Shares in Michael Page scouts fell as it was announced that recent job losses in the banking sector – some of the largest customers of the company – are slowing demand for its services. Similarly, headhunters Morgan McKinley said that vacancies in July fell 10 percent. But what has shaken the markets was the revelation that the body of the configuration of interest rates in the UK has been unanimous in holding that the rates should not rise at its meeting in early August. Two of its nine members had asked for higher rates to fight inflation – running at an annual rate of 4.4 percent – believe the economy is too weak to support a rate hike. In addition, members discussed whether the bristles other purchases may be needed to support the economy.
And while this column focuses on the UK place the battery seemed to be true on the continent, where investors are so concerned about the finances of many nations who fear the banking systems are also vulnerable. Economy Watch paused to remember what looks like a typical August in England, often damp, sometimes sunny and very quiet. We aspire to the good old days.