Tuesday, 24 April 2018
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
End to Squeeze Nears as U.K. Wages Increase Most Since 2015
Tuesday, 17 April 2018 15:52 WIB | EUROPE |Ekonomi inggris

U.K. wages are rising at their fastest pace in almost three years, raising the prospect of an end to the squeeze on living standards.

Annual pay growth excluding bonuses accelerated to 2.8 percent in the three months through February, the Office for National Statistics said Tuesday. Consumer-price inflation averaged 2.9 percent in the same period and is forecast to fall toward 2 percent this year. 

The figures may reinforce speculation that the Bank of England will raise interest rates again next month, despite the economy being disrupted by bad weather in the first quarter.

Officials fear home-grown inflationary pressures are building as labor shortages leave firms struggling to fill vacancies.

Employment rose to a record high between December and February after the economy added 55,000 jobs, the ONS figures show. The jobless rate fell to 4.2 percent, the lowest since 1975 and below the BOE's estimate of the equilibrium rate.

The prospect of a return to real-income growth is good news for hard-pressed households after more than a year of wages lagging behind prices. Using a measure of inflation that includes owner-occupier housing costs, pay growth overtook inflation between December and February.

Few, however, expect any immediate effect, with consumer spending -- and the economy as a whole -- forecast to see the weakest growth in years in 2018.

Private-sector regular wages rose an annual 2.9 percent in the latest three months, and were up 3 percent in February alone.

In February, the jobless rate fell to an all-time low of 4 percent. Unemployment dropped by 16,000 to 1.42 million in the latest three months and the inactivity rate declined to a record low.

But while a May rate increase is all-but priced in by investors, not everyone is convinced that the labor market is running out of slack. 

A study co-authored by former policy maker David Blanchflower argued this week that there are still a significant number of people seeking more hours, meaning unemployment may have to fall below 3 percent before wage growth picks up any serious traction. 

Source: Bloomberg

RELATED NEWS
U.K. Inflation Drops More Than Expected to Slowest in a Year...
Wednesday, 18 April 2018 16:01 WIB

Inflasi Inggris melambat ke level terlemah dalam setahun di bulan Maret seiring Bank of England bersiap untuk menaikkan suku bunga bulan depan. Harga konsumen naik 2,5 persen dari tahun sebelumnya, t...

U.K. Manufacturing Output Falls for First Time in Almost a Year...
Wednesday, 11 April 2018 15:53 WIB

Manufaktur AS menyusut untuk pertama kalinya dalam 11 bulan pada bulan Februari, dipimpin oleh output mesin dan peralatan. Produksi pabrik turun 0,2 persen dari Januari, di saat output tidak berubah,...

U.K. Factories in Best Growth Run Since 1997 Amid Global Upswing...
Wednesday, 10 January 2018 16:49 WIB

Produsen Inggris mencatatkan ekspansi bulan ketujuh pada bulan November seiring sektor dari produsen makanan sampai ke produsen game dan peralatan olahraga meningkatkan output mereka. Output pabrik n...

Eurozone business activity at its strongest since 2011: IHS Markit...
Thursday, 14 December 2017 18:58 WIB

Aktivitas bisnis di zona euro meningkat lebih tinggi di bulan Desember, dipimpin oleh output pabrik yang kuat dan kenaikan di sektor jasa, data IHS Markit mengungkapan pada hari Kamis. Indeks manajer...

U.K. Retailers Get Black Friday Boost as Sales Jump 1.1%...
Thursday, 14 December 2017 16:40 WIB

Black Friday memberikan peritel Inggris dorongan yang lebih kuat dari perkiraan bulan lalu seiring diskon mendorong penjualan peralatan listrik dan produk rumah tangga lainnya. Volume barang yang dij...

LATEST NEWS
Asia Stocks Rise as Political Tensions Ease; Korea Shares Fall

Asia stocks rose as investors turned their attention to the outlook for company earnings and as concerns about global political tensions eased. A weaker yen supported Japanese equities. The MSCI Asia Pacific Index gained 0.4 percent to 173.36 as...

Gold Holds Near Two-Week Low; Palladium Extends Drop

Gold holds 3-day decline as dollar trades at the highest since early January. Palladium heads for the biggest 2-day drop in more than a year. Bullion for immediate delivery was steady at $1,325.61/oz. Silver +0.4% to $16.6929/oz....

EUR/USD Tumbles Further Below 1.22 on Downbeat IFO

The single currency saw its decline accelerated today and is now forcing EUR/USD to drop to fresh lows in the vicinity of the 1.2180 region. The selling sentiment remains well and sound around the European currency during the first half of the...

POPULAR NEWS
Gold Futures Fall to 2-Week Low as Haven Demand Wanes
Tuesday, 24 April 2018 01:34 WIB

Gold declines to a 2-week low as demand for a haven eased amid cooling geopolitical tensions and a rally in the dollar. Bullion futures...

Gold On The Defensive - Peter Hug
Tuesday, 24 April 2018 05:44 WIB

On holiday last week, I am missing the nuance of the past few trading days. We suggested that the technical picture was looking positive with the...

Gold Declines Third Day as U.S. Hints at China Truce
Monday, 23 April 2018 12:58 WIB

Gold drops a third day after U.S. Treasury Secretary Steven Mnuchin hints at a truce with China on trade, and as tensions on the...

Oil Trades Below $69 as U.S. Rig Count Climbs to 3-Year High
Monday, 23 April 2018 10:26 WIB

Oil traded below $69 a barrel as the number of crude rigs in the U.S. rose to a three-year high in a sign American production may expand...