Economic Review – August 2018

The Bank of England (BoE) has raised interest rates for only the second time in more than a decade, but stuck to its previous guidance that any further monetary tightening is likely to be only gradual and limited in extent.

Second quarter data confirmed that the UK economy did bounce back from its winter slump although it also suggests that any momentum is unlikely to be maintained over the coming months.

At the end of August, trade tensions between the US and its international trade partners weighed on sentiment. Whilst trade talks with Canada are set to resume, President Trump is keen to progress with his plan to impose tariffs on $200 billion worth of Chinese goods. (Data compiled by The Outsourced Marketing Department)

Chancellor Philip Hammond has received another welcome boost with the latest public finance statistics reporting the largest July budget surplus in 18 years.

A study by an independent think tank has found that average earnings remain significantly lower than they were a decade ago, despite employment currently standing at a record high level.