Wednesday, 22 June 2011

Economy of UK


The UK economy is emerging slowly from recession, but growth is moderate and unemployment is high. In addition, the UK is facing inflation above the government’s target of 2%. Also, the government have taken several steps to reduce the burden of government borrowing; these spending cuts and tax rises are likely to keep the economic recovery at a modest pace.

Economic Growth

economic growth
Source: ONS
GDP (QoQ)


10Q3 0.8 %
Service sector output

3m to Sep 2.1 %
Industrial production

3m to Oct 3.8 %
Manufacturing output

3m to Oct 5.6%
Households’ consumption

10Q3 1.7%
Retail sales volumes

Oct -0.1%
Whole economy investment
10Q3 2.8%
Goods exports (volumes)

3m to Oct 12.0
Goods imports (volumes)

3m to Oct 11.6
Current account balance, £bn
10Q2 -7.4
Business Investment (Provisional)
10Q2
1.9%

Unemployment

unemployment
Source: ONS
Labour market & earnings






Unemployment, mn

3m to Oct 2.50
Unemployment rate, %

3m to Oct 7.9
Claimant unemployment, mn
Nov 1.47
Claimant rate, %

Nov 4.5
LFS total in employment, mn

3m to Oct 29.1
LFS employment rate, %

3m to Oct 70.6
Workforce jobs, mn

Sep 30.7
Headline average earnings %4
3m to Oct 2.3
.

Inflation

inflation
Source: ONS
Inflation & prices



CPI


Nov 3.3
RPI


Nov 4.7
RPIX


Nov 4.7
Producer output prices (nsa)
Nov 3.9
Producer input prices (nsa)
Nov 9.0
Halifax house prices

Nov -0.7
Nationwide house prices

Nov 0.4

Government Borrowing

  • More on UK Public Sector Debt
  • UK Debt increased rapidly after 2007 because of the recession, falling tax receipts and financial bailout for banks.
  • The government have taken several steps to try and reduce the level of government borrowing such as tax increases and spending cuts. However, the stabilisation of public sector debt to GDP depends on continued economic growth.
  • Gross Public Sector Debt includes temporary financial sector intervention
  • Public Sector debt excludes financial sector intervention.
Sources:
  • Data Forecasts HM Treasury
  • Current Interest rates at Bank of England
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