Leading Indicators | Pay pressures down, fiscal headroom up?

Written By:
Khadija Hussain, Knight Frank
1 minute to read

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Here we look at the leading indicators in the world of economics.

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UK wage growth eases to two-year low

The UK’s unemployment rate fell to 4.0% in the three months to August 2024, while private sector wage growth slowed to 4.8%, its lowest level in two years. The latest figures indicate a gradual loosening of the labour market, reinforcing expectations that the Bank of England will cut rates next month from 5.00% to 4.75%.

Reeves could gain an extra £16bn by focusing on alternative debt measures

Ahead of the upcoming budget, Chancellor Rachel Reeves faces a challenging task of addressing a £22bn budget shortfall. Her ability to increase spending on Britain’s ailing public services remains constrained by a commitment to reduce national debt as a share of GDP within 5 years. However, Reeves could unlock an additional £16bn in borrowing by targeting a different measure of debt.

UK attracts 1,555 FDI projects in 2023-2024

This week, the UK hosts its  International Investment Summit, bringing together 200 executives from around the UK and overseas. Prime Minister Keir Starmer has announced several initiatives aimed at boosting foreign investment, alongside £63bn in private capital commitments.

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