ECB’s Christine Lagarde: Coronavirus cases putting recovery at risk October 6, 2020 European Central Bank (ECB) president Christine Lagarde has warned that a second coronavirus wave could lead to a “shaky” economic recovery in the Eurozone, and said Covid has scarred some parts of the economy “probably for the long haul”. However, Lagarde told the Wall Street Journal in an online conversation that monetary and fiscal policy [...]
UK PMI: Construction activity rebounded more than expected in September October 6, 2020 The UK’s construction sector unexpectedly picked up speed in September, helped by a post-lockdown bounce in the housing market, according to survey data. The IHS Markit/CIPS UK Construction Purchasing Managers’ Index accelerated to 56.8 from 54.6 in August – well above the 50-point measure that separates expansion from contraction. The reading was above all forecasts [...]
Name your price: How better carbon pricing can help the fight towards net zero October 6, 2020 As the old joke goes, if you get three economists together, you are likely to get at least half a dozen different opinions. But there is one thing that economists do agree on: you need to price carbon effectively if you are to shift economic activity towards a lower carbon future. About 40 countries around [...]
Leading business figures call on Sunak to slash taxes to return to 90s growth October 5, 2020 Leading business figures have backed calls from the Institute for Economic Affairs (IEA) for the government to implement similar policies to those that contributed to the best period of economic growth in recent history. These include slashing and streamlining taxes in order to build a “bright future”. Wetherspoons founder Tim Martin, JP Morgan VP Laurence [...]
UK PMIs: Business activity slowed less than thought in September October 5, 2020 Britain’s economy proved more resilient than initially thought last month, with business activity continuing to grow despite the introduction of fresh lockdown restrictions and the end of the Eat Out to Help Out scheme, a major survey showed. The IHS Markit/CIPS Purchasing Managers’ Index (PMI) for the services sector dropped to 56.1 in September from [...]
US jobs recovery slows ahead of November election October 2, 2020 The recovery in the US jobs market slowed in September as fiscal stimulus and pent-up demand ran dry, according to the last set of official figures before the November presidential election. More than 660,000 Americans found work last month, the Bureau of Labor Statistics (BLS) said. However, the jobs growth undershot the 850,000 increase predicted [...]
UK GDP forecast to shrink by around 10 per cent in 2020 October 1, 2020 Economic forecasters expect UK GDP to contract by around 10 per cent in 2020 following a tightening of coronavirus restrictions. New research published today by PwC has forecast a contraction of between 11 and 12 per cent for the year, while S&P Global has predicted the UK economy will contract by 9.7 per cent. Both [...]
UK PMIs: Manufacturing recovery continues despite fresh lockdown fears October 1, 2020 Britain’s manufacturing sector continued its strong recovery from the coronavirus slump in September, although it dropped off the record pace set in August. The IHS Markit/Cips manufacturing purchasing managers (PMI) index stood at 54.1 in September, with any score above the 50 mark indicating growth. In August, the index recorded a score of 55.2, its [...]
US GDP plummets 31 per cent in second quarter to lowest on record September 30, 2020 US GDP plummeted 31.4 per cent in the three months to July to the lowest level on record, data revealed today, as President Donald Trump scrambles to restore the economy ahead of the presidential election next month. Annualised figures released today by the US Bureau of Economic Analysis (BEA) revised up an earlier estimate which [...]
BoE’s Andy Haldane warns against ‘Chicken Licken’ economic pessimism September 30, 2020 The Bank of England’s chief economist said there was a risk that overly pessimistic “Chicken Licken” views about the impact of Covid-19 would hold back Britain’s economic recovery from the pandemic. In a speech given today, Andy Haldane said that authorities such as the BoE have a “public responsibility to avoid economic catastrophizing” during the [...]
