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23 May 2022 - Economy shrinks, despite fall in unemployment
There is a growing sense of inevitability about the slowdown in the activity in the economy, despite the strength of the employment market.
Data released last week showed that the claimant count fell by 56.9k, far more than analysts had expected. However, with inflation reaching 9% and leading indicators of output slowing, there are growing fears that a recession will be almost impossible to avoid.
The cost-of-living crisis that had been feared since the Chancellor announced tax rises last November and rise in the cap on energy prices in response to the exponential rise in the cost of wholesale energy has exacerbated the issue.
It displays a worrying lack of forward-thinking on the part of Rishi Sunak that he was unable to foresee the issues created by the country’s emergence for the Pandemic, although, clearly, he was taken by surprise by the ferocity of the conflict in Ukraine and the effect it has had ion supply chains of several foodstuffs.
The Prime Minister has promised to use fiscal firepower to mitigate the cost-of-living crisis, He likened the support the lowest paid need to the support that was provided during the furloughs as lockdowns bit into wage packets.
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.
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By CurrencyTransfer
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There is a growing sense of inevitability about the slowdown in the activity in the economy, despite the strength of the employment market.
Data released last week showed that the claimant count fell by 56.9k, far more than analysts had expected. However, with inflation reaching 9% and leading indicators of output slowing, there are growing fears that a recession will be almost impossible to avoid.
The cost-of-living crisis that had been feared since the Chancellor announced tax rises last November and rise in the cap on energy prices in response to the exponential rise in the cost of wholesale energy has exacerbated the issue.
It displays a worrying lack of forward-thinking on the part of Rishi Sunak that he was unable to foresee the issues created by the country’s emergence for the Pandemic, although, clearly, he was taken by surprise by the ferocity of the conflict in Ukraine and the effect it has had ion supply chains of several foodstuffs.
The Prime Minister has promised to use fiscal firepower to mitigate the cost-of-living crisis, He likened the support the lowest paid need to the support that was provided during the furloughs as lockdowns bit into wage packets.
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.