UK Labor Market Cools Down In Q1

RTTNews | 32 days ago
UK Labor Market Cools Down In Q1

(RTTNews) - The UK unemployment rate edged up and wage growth softened in the first quarter ahead of the rise in payroll taxes, official data revealed on Tuesday.

The unemployment rate rose to 4.5 percent in the three months to March, in line with expectations, from 4.4 percent in the three months to February, the Office for National Statistics reported. Average regular earnings excluding bonuses grew 5.6 percent on a yearly basis in the January to March period, slower than the 5.9 percent rise in the preceding period. This was also slightly weaker than the expected growth of 5.7 percent.

At the same time, including bonuses, average earnings advanced 5.5 percent year-on-year, which was better than the forecast of 5.2 percent.

Payroll employees for April decreased 33,000 compared to the previous month and declined 106,000 from the previous year to 30.3 million.

The estimated number of vacancies was down by 42,000 from the previous quarter to 761,000 during February to April. This was the 34th consecutive quarterly decline. Data showed that an around 55,000 working days were lost because of labor disputes in March.

ING economist James Smith said hiring conditions are cooling, and this is very gradually putting downward pressure on wage growth.

That's good news for the Bank of England, though it will want to see a few more months of improvement before drawing any firm conclusions, the economist added.

With wage growth still stuck in the 5.5-6.0 percent range and energy prices set to drive up inflation to 3.5 percent later this year, this probably would not be enough to convince the Bank of England to diverge from its current pace of cutting interest rates once every quarter, Capital Economics economist Ruth Gregory said.

read more
UK Economy Contracts Most Since 2023

UK Economy Contracts Most Since 2023

The UK economy contracted at the fastest pace in 18 months in April as the end of stamp duty holiday, tax hike on businesses and higher US trade tariffs damped the positive momentum seen at the start of the year. Real gross domestic product declined 0.3 percent month-on-month in April, following a growth of 0.2 percent in March, the Office for National Statistics reported Thursday.
RTTNews | 2 days ago
UK Jobless Rate Rises; Wage Growth Softens

UK Jobless Rate Rises; Wage Growth Softens

The UK unemployment rate rose slightly in the three months to April period and wage growth softened as the rise in social security contribution and the minimum wage started to weigh on the labor market activity. The ILO jobless rate rose to 4.6 percent in the three months to April, as expected, from 4.5 percent in the three months to March, data from the Office for National Statistics revealed T
RTTNews | 4 days ago
UK Halifax House Prices Fall Unexpectedly

UK Halifax House Prices Fall Unexpectedly

UK house prices declined unexpectedly in May after the stamp duty holiday ended in March, data from the mortgage lender Halifax revealed on Friday. House prices dropped 0.4 percent month-on-month in May, in contrast to the 0.3 percent increase in April. Prices were expected to grow 0.4 percent. On a yearly basis, house price inflation softened to 2.5 percent in May from 3.2 percent in April.
RTTNews | 8 days ago
UK Construction Sector Downturn Softens In May

UK Construction Sector Downturn Softens In May

The UK construction sector contracted at a slower pace in May as the fall in new orders hit the slowest in four months, survey data from S&P Global showed on Thursday. The construction Purchasing Managers' Index posted 47.9 in May, up from 46.6 in April. The indicator suggested the slowest reduction in output volumes since January.
RTTNews | 9 days ago
UK Manufacturing Sector Shrinks Sharply

UK Manufacturing Sector Shrinks Sharply

The UK factory sector shrank further in May as the weak global demand, trade tensions and rising cost burdens weighed on production and new orders, the purchasing managers' survey results from S&P Global showed on Monday. The final manufacturing PMI rose to a three-month high of 46.4 in May from 45.4 in April. The reading was also above the flash estimate of 45.1.
RTTNews | 12 days ago
UK Mortgage Approvals Fall Unexpectedly; House Prices Rise

UK Mortgage Approvals Fall Unexpectedly; House Prices Rise

UK mortgage approvals declined unexpectedly to the lowest level in more than a year in April as stamp duty holiday ended in March, data from the Bank of England revealed Monday. Elsewhere, data from the mortgage lender Nationwide Building Society showed that house prices rebounded unexpectedly in May suggesting momentum in underlying demand. Approvals for home loans rose to 60,463 in May.
RTTNews | 12 days ago
UK Vehicle Manufacturing Logs Weakest Start To Year Since 2009: SMMT

UK Vehicle Manufacturing Logs Weakest Start To Year Since 2009: SMMT

UK automotive manufacturing registered its weakest start to a year since 2009, the Society of Motor Manufacturers & Traders, or SMMT, said Thursday. Car and commercial vehicle production decreased 15.8 percent on a yearly basis to 59,203 units in April. Auto production fell to the lowest level for the month since 1952, excluding 2020 when the first Covid lockdown effectively saw manufacturing c
RTTNews | 16 days ago
UK Retail Sales Growth Tops Expectations On Warm Weather

UK Retail Sales Growth Tops Expectations On Warm Weather

UK retail sales rebounded more than expected in April as good weather boosted food store sales, official data showed on Friday. A monthly survey today showed that British consumer confidence strengthened in May on hopes of easing trade tensions and the interest rate reduction by the Bank of England. Retail sales grew 1.2 percent on a monthly basis in April, following a revised 0.1 percent rise
RTTNews | 22 days ago