Credit, collections & insolvency news
UK inflation fell to the lowest rate in two years last month, falling to 4.6% in the year to October from 6.7% in September. Economists have said the main reason inflation has fallen from its peak of 11.1 per cent in October 2022 is due to a reduction in the energy price cap, which limits…
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Latest Office for National Statistics (ONS) data has shown that the economy failed to grow in Quarter 3 (Q2). While GDP was up 0.2% in September, growth for August was revised down to 0.1% from 0.2%. With GDP flatlining in Q3, it means the UK has avoided a recession in 2023, with this defined as…
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The UK should still avoid a recession, although GDP growth is set to remain sluggish for the remainder of 2023 and into 2024 amid headwinds from high interest rates and a weaker-than-anticipated labour market, according to the EY ITEM Club’s new Autumn Forecast. Following a better-than-expected start to the year, GDP growth expectations for 2023 have…
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Latest figures from the Office for National Statistics (ONS) has shown that GDP grew 0.2% in August, and 0.3% between June to August. The services sector was the biggest contributor with growth of 0.4%. Consumer services were down 0.6% after a 10.8% fall in sports, amusement and recreation activities. Production output fell 0.7% whilst construction also…
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Financial services activity held relatively firm in Q3 of 2023, despite some softening from a buoyant second quarter. Optimism and business volumes growth were quick in the three months to September, although to a lesser extent than the previous quarter, according to the latest CBI Financial Services Survey. The quarterly survey, found that Financial Services…
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The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, remained subdued at -26 in September 2023, similar to August’s reading of -28. This is the fourth consecutive month in which economic confidence has been relatively low, following a large drop in June. Order books were suggestive of…
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The Bank of England has announced that it has held interest rates at 5.25%, pressing pause on rate hikes after rising relentlessly since December 2021, ending a fourteen-meeting run of rate rises. The.MPC voted 5 to 4 in favour of holding rates steady, with four members preferring a 0.25% rise to 5.5%. Commenting on the…
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Figures from the Office for National Statistics (ONS) showed that prices rose less than expected in August. The annual rate of inflation fell to 6.7% last month, much lower than the rise from 6.8% in July to 7% economists had expected. Core inflation, excluding food, energy, alcohol and tobacco, stood at 6.2% in August, down…
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With the latest labour market statistics, showing a 0.5 percentage point quarterly rise in unemployment in the three months to July, the Institute of Directors is calling on the Bank of England to stop raising interest rates. Kitty Ussher, Chief Economist at the Institute of Directors, said “With today’s data showing a weakening labour market,…
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New research from Bibby Financial Services (BFS) has found that small and medium sized (SME) manufacturing businesses across the globe are being significantly impacted by current economic conditions. Four in ten (40%) manufacturers surveyed across nine key international markets agree that global business conditions are worse now than during the pandemic, and over a quarter…
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Three in four brokers (75%) expect the Government to miss its target of halving inflation and expect inflation to remain above 5% at the end of the year according to research by iwoca. While inflation fell to 6.8% in July, core inflation remained flat at 6.9% and projections suggest August could see rates rise again.…
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August’s flash composite Purchasing Managers’ Index (PMI) has indicated a fall in private sector activity, ending a run of six successive months of expansion. In practice, the EY ITEM Club doesn’t think the economy is quite as weak as the PMI suggests, although a continuation of the sluggish growth of recent quarters is likely for…
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Latest GDP figures have shown that the economy grew 0.5% in June and 0.2% between April to June. The struggling manufacturing sector experienced a modest rebound in the second quarter and with the economy benefitted from the effects of May’s extra bank holiday. The Bank of England said last week that it expected annual growth…
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