Economic Development Horizon Scanner Q3
The UK economy stands in a precarious position. The productivity puzzle is proving to be a tougher nut to crack than originally hoped, and this has created a situation where employment levels and the rate of unemployment are in rude health and inflation is rising – yet economic growth is stalling. The Bank of England’s recent interest rate rise from 0.25% to 0.5% is aimed at pulling inflation down in an attempt to protect households from the rising cost of living. The pound has fallen sharply since the move, which may further boost exports, but otherwise cannot be interpreted as anything but negative news for growth.
In our latest Horizon Scanner update, we have set out a range of indicators of the direction of economic change in the UK, which will impact on all of our efforts to stimulate economic development. Click here to view the full report.