• 1711_New Iconography Set_Blood Orange_microsite
    0.60% Steady
    CPI
  • 1711_New Iconography Set_Blood Orange_microsite
    2.2%
    GDP Output
  • 1711_New Iconography Set_Blood Orange_microsite
    2.2% Wage Increase
    Economy

Macro Economics

The Consumer Price Index (CPI) measure of inflation went up to 0.60% in the year to August, unchanged from July in line with forecasts.

The alternative Retail Price Index (RPI) measure which includes mortgage payments, dropped to 1.8% in August from 1.9% in July.

Rises in measures were attributed to the higher cost of imported goods. Interest rates were cut to 0.25% an all-time record low on the back of lower growth prospects. 

Construction Output

Construction output fell by 2.1% in May according to the ONS, reflecting the slow down and uncertainty around the Brexit vote. Output was flat in July as pent up demand held on the referendum result was released, albeit official figures have not been released.   

Purchasing managers index are forecasting a weakening in confidence moving forward. GDP growth is predicted to fall into the 3rd Quarter 2017 down to 0.5% per annum with construction contributing 15% to the overall GDP figures, output in the sector is forecast to be commensurately down.

Viability and uncertainty in the economy has caused the Construction Products Association to take the un-precedent step of cancelling its current forecast, due to lack of credible data. The next forecast will not be published until February 2017.

Unemployment

UK unemployment fell to 4.9% between May and July, the lowest level since 2015, with 174,000 new jobs created.

The labour market is showing resilience to the Brexit vote with business as usual across the economy particularly in the private sector.

Employment for 18 to 24 years, the hardest hit in the last recession, was given a boost with a reduction to 11.8% unemployment in the age group, accounting for half the fall of the headline rate in the quarter.