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by Phillip Inman Economics correspondent on (#QYHF)
Debate rages on over whether China is stuck in an industrial rut or rebalancing towards servicesChina is on the road to recovery. Or maybe it isn’t, at least not for some time, say the contradictory reports on the world’s second-largest economy.The latest GDP figures, showing a growth rate in the third quarter of 6.9%, down from 7% in the second quarter, have done little to lay this particular debate to rest.Related: Xi Jinping plays down China's economic 'growing pains' Continue reading...
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Updated | 2025-04-02 08:16 |
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by Letters on (#QYGS)
According to the Office for Budget Responsibility (OBR), letting English universities recruit as many students as they like will mean 1,000 more home and EU undergraduates in the coming years. Given that 400,000 full-time undergraduates begin their studies each year, that is both imperceptible and implausible.It is less than one extra student from each school and college with a sixth form. Yet universities are now free to recruit as many students as they like from the other 27 EU states as well as the four parts of the UK. Continue reading...
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by Reuters on (#QYB1)
Bank’s chief executive blames volatility in global markets for disappointing third-quarter results as trading revenue plummetsMorgan Stanley’s profits have slumped for the second consecutive quarter as uncertainty about the timing of a US interest rate rise and concerns about China’s cooling economy drive investors from bond, currency and commodity markets.The last of the big US banks to release third-quarter results, it said earnings applicable to common shareholders had fallen 42.4% to $939m (£606m), or 48 cents a share, from $1.63bn, or 83 cents a share, a year earlier. Analysts had been expecting 62 cents a share. Continue reading...
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by Suzanne Moore on (#QY9T)
The party is split over tax credit cuts: some Conservative MPs are deeply uneasy about rhetoric suggesting working families won’t be worse off next AprilAusterity enters its next phase. Many still don’t use that word or understand what it means. But we are now crossing the line from austerity-lite to deep austerity. One of the chief indicators is that the kind of protests we are seeing are not coming from the much demonised “underclass†– who are presumably too busy breeding, smoking and eating saturated fats – but from those who are “nice†and recognised as “respectableâ€.Last week, a tearful woman on Question Time talked about how tax credit cuts may affect her. Tory MPs everywhere are shuffling nervously, not exactly certain how to sell the rhetoric of taking money from the working poor. It’s not as easy for them as cutting benefits, which could simply be depicted as taking candy from obese babies and their feckless mothers.Related: A Tory-voter breaks down on TV over tax credits cuts. Here’s Labour’s chance | Owen JonesThe new wave of protest will not come from the 'shirkers' who government has already written off, but the strivers Continue reading...
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by Tom Phillips in Beijing and Simon Goodley on (#QWE2)
Chinese leader says ahead of UK visit that he will focus on increasing overseas trade relationships, including starting a ‘golden era’ with BritainXi Jinping has acknowledged that China’s leaders are concerned about the economy, but described the problems as “growing painsâ€, as he prepared to leave for his first state visit to the UK, bringing with him billions of pounds of planned investment.In the wake of stock market jitters that rocked China and the wider region recently, and with imminent growth figures likely to confirm the slowest growth rate since 2009, the Chinese president said China was looking to external deal-making with countries such as Britain as a way of diversifying its economic base.
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by Martin Rowson on (#QWD9)
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by Reuters on (#QW6D)
CEBR study claims potential £58bn of growth and 790,000 new jobs would be lost if Britain had to renegotiate access to markets after leaving EUIf Britain opts to stay in the European Union and achieves the market reforms it wants, it could receive a £58bn economic boost and 790,000 new jobs by 2030, a London-based economic consultancy has said.The Centre for Economics and Business Research (CEBR), which produced its report for the campaign group Britain Stronger in Europe, said on Sunday that creating a single digital market and opening up the financial, transport and energy sectors could increase British GDP by 2.8%, equating to £2,832 per household.Related: Every cabinet minister is a Eurosceptic, says Michael Fallon Continue reading...
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by Graeme Wearden on (#QVT3)
Analysts do not rule out European Central Bank boosting QE this week, although December is still seen as the most the likely monthThe European Central Bank is expected to hint at fresh stimulus measures to ward off the threat of deflation when it holds its next monetary policy meeting on Thursday.This week’s gathering takes place in Malta, under the governing council’s policy of occasionally departing from its Frankfurt HQ to visit other areas of the eurozone. Continue reading...
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by Larry Elliott Economics editor on (#QVCM)
In the recent downturn, trading off pay increases for jobs has meant that the economic pain has been spread aroundA lively spat is going on between two former members of the Bank of England’s monetary policy committee. On one side is David “Danny†Blanchflower, who says the UK has experienced its slowest and worst recovery since the aftermath of the South Sea Bubble in 1720. On the other side is Andrew Sentance, who says the performance of Britain’s labour market since the recession undermines the idea that the country has been going through an unprecedented period of economic purgatory.So who’s right? Given the nature of economics, it will hardly come as a surprise that both Blanchflower and Sentance can claim to be right. Nor, given that the pair repeatedly clashed when they were on the MPC together and have not exactly buried the hatchet since, is it that surprising that they are talking past each other. Continue reading...
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by William Keegan on (#QV44)
John McDonnell’s U-turn was typical of the peril that can befall the treasury opposition brief. At least he knew, as his predecessor did, when to stop diggingIt is proving quite a month for chancellors and shadow chancellors. The symmetry with which Geoffrey Howe, chancellor 1979-83, followed Denis Healey, chancellor 1974-79, both in life and in death (they died within a week of each other) was remarkable.They both lived to a ripe old age – Healey to 98 and Howe to 88 – and got on famously, despite the oft-quoted jibe by Healey that being attacked by Sir Geoffrey (as he then was) in parliament was like being savaged by a dead sheep. Continue reading...
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by Tom Phillips in Beijing on (#QTTK)
On the eve of his first state visit to the UK, the Chinese president speaks in glowing terms about the prospect of closer ties between London and BeijingChinese president Xi Jinping praised Britain’s “visionary and strategic choice†to become Beijing’s best friend in the west as he prepared to jet off on his first state visit to the UK, taking with him billions of pounds of planned investment.The trip, Xi’s first to Britain in more than two decades, has been hailed by British and Chinese officials as the start of a “golden era†of relations which the Treasury hopes will make China Britain’s second biggest trade partner within 10 years.
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by Heather Stewart and Katie Allen on (#QQ69)
Economists, analysts and politicians are divided over the pros and cons of the UK chancellor’s fêting of China for investment and ordersThe ancient Silk Road, along which caravans of traders brought fine Chinese cloths and exquisite porcelain to markets across Asia, never stretched as far as chilly Britain. But George Osborne is determined that its 21st-century successor will terminate in London.China’s plan to step up renminbi-denominated trading in the City is just the latest evidence of what the chancellor hopes will be a “golden era†of economic and financial cooperation between China and the UK.Related: Osborne kicks off China visit vowing to be Beijing's best friendRelated: George Osborne’s flirtation with China is steering us into uncharted waters | Rafael Behr Continue reading...
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by Katie Allen on (#QP6W)
Kristin Forbes signals she may vote for an interest rate hike by downplaying potential fallout for UK from emerging markets slowdownAn interest rate hike in the UK will come “sooner rather than later†and pessimism about the state of the global economy is overdone, according to a Bank of England policymaker.Kristin Forbes, a member of the bank’s rate-setting monetary policy committee (MPC), was also upbeat about the domestic economy. She argued that the country had only limited exposure to emerging markets such as Russia and Brazil and that, despite signs of a slowdown in those markets, British businesses should not be deterred from building stronger links with them.Related: World stock markets hit two-month highs as stimulus hopes build - business liveKristin Forbes says despite increased risks the current “gloom and doom†on emerging markets is “overblown†http://t.co/SnyNwS3fZjRelated: China should avoid financial meltdown Continue reading...
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by Sarah Butler on (#QN0Z)
Retailer’s annual How We Shop, Live & Look report shows shoppers are snapping up 70s-influenced furniture and fashion. Macrame pouffe, anyone?Crank up the Demis Roussos, break out the stuffed olives and warm the Black Tower. Britain is getting its Abigail’s Party started as we return to the 1970s in our shopping habits, according to John Lewis.With sales of vinyl records soaring, John Lewis’ annual survey of its customers shopping habits reveals retro-technology including record players and wall clocks are returning to homes being decorated in the brown and orange tones of Mike Leigh’s 1977 play about a suburban drinks party. Continue reading...
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by Rupert Jones on (#QMD8)
Rents rose across most of England by averages of 6.3% and 8.5% in past year, say separate studies, but fell in the north-west, north-east and WalesInflation may have dipped into minus figures, but rents have leapt by an average of between 6.3% and 8.5% over the past year, according to two reports, highlighting the dramatic extent to which the cost of a place to live has uncoupled from the cost of living.The average rent paid by private tenants in England and Wales reached a record high of £816 per month in September, compared with £768 a year earlier, said letting agents Your Move and Reeds Rains. Meanwhile, the latest official inflation figures showed UK prices were 0.1% lower than this time last year. Continue reading...
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by Guardian Staff on (#QKNA)
The change to ringfencing makes sense but the regulator will now have to prove bank shortcomings if it wants to dish out fines or bansA regulatory victory for the banks? Of course. Actually, it’s two victories. First, under the new ringfencing rules, the retail operations of big banks will be able to pay dividends to their parent companies. Second, when things go spectacularly wrong at big banks, senior executives will no longer have to prove they took all reasonable steps to prevent catastrophe; instead, the burden of proof will lie with the regulator.Only one of these victories – the first – is deserved. An outright ban on ringfenced retail units paying dividends never made sense. Who would want to own, or invest in, a high street bank where surplus capital could be trapped permanently? Banks are still businesses, let’s not forget.Related: UK government waters down financial regulation regimeRelated: Burberry sales hit by Chinese slowdown Continue reading...
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by Sarah Butler on (#QKF0)
Business department may offer legislation simplifying price comparisons and helping consumers make better shopping choicesThe UK government is to analyse how supermarkets can make prices clearer for shoppers after an investigation by the competition watchdog.
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by Letters on (#QKD5)
I’m sure the government is delighted that inflation is below zero in the month governing the adjustment of public service pensions (Report, 15 October). As a household dependent upon two such pensions, we will also be delighted if the inflation rate does not suddenly and mysteriously rise in the next few months.
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by Phillip Inman economics correspondent on (#QKCB)
Italian prime minister unveils business-friendly tax cuts and rise in spending despite EU warning plans may breach austerity rulesThe Italian government has approved a series of business-friendly tax cuts and measures to boost consumer spending that could put Rome in breach of austerity budget rules set by Brussels.Prime minister Matteo Renzi said a reduction in the main corporation tax rate and reduced levies on agricultural and industrial equipment were aimed at supporting Italy’s fragile recovery. Continue reading...
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by Graeme Wearden on (#QHJ7)
All the latest economic and financial news, as fashion firm Burberry warns that demand for luxury goods is fading, particularly in China
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by Larry Elliott on (#QJY4)
It may look strong, but retail sales are weak, productivity is poor, growth modest and the labour market is hardly racing aheadThe evidence from the world’s biggest economy looks conclusive. Americans filing new jobless claims fell to 255,000 last week – the lowest figure since Richard Nixon was president during the final few months of the post-second world war boom 42 years ago.Fewer claims for unemployment benefit means the labour market is running hot, which in turn means the economy is overheating, which in turn means the Federal Reserve made a strategic blunder when it confounded Wall Street by declining to raise rates in September. Simple, right? Continue reading...
by Australian Associated Press on (#QH2P)
A reduction in full-time jobs of 13,900 was only partly offset by a rise in part-time jobs while the fear of mortgage rate rises also hangs over the CoalitionA fall in the number of people employed and the prospect of banks raising mortgage rates will put to the test the nation’s renewed confidence since Malcolm Turnbull became prime minister.
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by Andrew Sparrow on (#QE30)
Rolling coverage of all the day’s political developments as they happen, including David Cameron and Jeremy Corbyn at PMQs, and MPs debating the fiscal responsibility charter
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by Letters on (#QG06)
This assertion that economics is not a science (Joris Luyendijk, Opinion, 12 October) was verified by the article preceding it (Money machine didn’t work – so keep it switched on). This apparently is the only advice that the IMF can give in these unprecedented times, where debt is the only growth industry and negative interest rates are being considered as a means of not solving but perpetuating this uneconomic, unsustainable situation.I am a biologist, a very expansive science, and as such I have an understanding of energy transfer, production and growth, self-sustaining systems, feedback mechanisms, carrying capacities, natural selection and evolution. Unfortunately, economists do not have such a broad understanding of the natural world in which they operate. They also seem to be woefully unaware that the functioning of any activity involving humans, such as money-dealing, cannot be described by a mathematical formula but will be determined by the behaviour and mindset of the people doing the deals. Continue reading...
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by Letters on (#QG0A)
I hope AB InBev, as the new owner of SABMiller, will look into ActionAid’s allegations of tax-avoiding by its new purchase (Report, 13 October). In our Calling Time investigation into the complex tax affairs of SABMiller, we claimed the company used a massive network of 65 tax-haven companies to siphon money away from African countries. We claimed that by routing money through Mauritius, Switzerland and the Netherlands, SABMiller was avoiding £20m of African taxes every year. Though SABMiller has strongly denied these claims, it appeared to us that Marta Luttgrodt, whose tiny beer stall stands in the shadow of its Ghanaian brewery, was paying more tax than SABMiller in Ghana. Corporate tax avoidance in developing countries leaves healthcare, schools and other key public services starved of resources. AB InBev must take this opportunity to help poor countries find a sustainable route out of poverty.
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by Patrick Wintour and Rajeev Syal on (#QFHG)
MPs say shadow chancellor John McDonnell’s handling of fiscal charter issue has damaged party’s credibility, but most will back decision to oppose itLabour has forfeited the chance to regain voters’ trust on the economy after its U-turn over the government’s fiscal charter, the party’s MPs have warned the day of a Commons vote.The vote on Wednesday evening is likely to see a small group of Labour MPs abstaining, the first revolt of Jeremy Corbyn’s leadership, but most will back the decision to oppose a charter they believe would excessively tie the hand of a future Labour government.Related: John McDonnell admits U-turn on fiscal charter vote might confuse Labour MPs Continue reading...
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by Phillip Inman economics correspondent on (#QETN)
Latest figures show 0.5% decline brought on by China’s market troubles and decline in demand for westerm cars and tools in AsiaIndustrial production in the eurozone slumped in August by 0.5%, according to official figures that illustrate the impact of falling demand for Europe’s cars and machine tools in China and the east Asia.The latest figures showed an even bigger drop in the year-on-year growth rate to just 0.9% growth when a rise of 1.8% had been expected.
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by Larry Elliott on (#QERF)
Earlier in 2015 an unemployment rise was accompanied by an acceleration in wage growth. Now the opposite is happeningEmployment rising. Earnings growth down. Living standards up. Interest rates going nowhere fast. Those were the four big themes of the latest snapshot of the UK labour market.Let’s start with jobs. After a lull in the spring and early summer, the number of people in work is going up and the number unemployed is coming down. The government boast that employment is at a record level is a bit meaningless in the light of a rising population, but more jobs are being created, the bulk of them full-time posts. Also, the unemployment rate dipped to 5.4%.Related: Unemployment at lowest level for seven years, figures show Continue reading...
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by Rowena Mason Political correspondent on (#QECK)
Shadow chancellor says he will further clarify party’s position on George Osborne’s proposal to change budgetary rules during Commons debateThe shadow chancellor, John McDonnell, has admitted that Labour MPs might be confused by his changing stance on a key Commons vote on Wednesday evening, but insisted they would not rise to George Osborne’s call for “moderates†to vote with the government.McDonnell said he would clarify Labour’s position further in the debate on Osborne’s proposed fiscal charter – a measure that would bind future chancellors to run a surplus in normal economic times. The shadow chancellor had initially said Labour would support the measure, but at a meeting of the parliamentary Labour party on Monday evening he informed MPs that he wanted them to vote against it.
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by Rowena Mason and agencies on (#QE52)
London mayor warns that Britain must learn from Japan, where shrinking population has contributed to long period of economic stagnationBoris Johnson has warned that Britain must consider the negative impact of very low immigration, as the government comes under pressure to reduce the number of migrants coming to the UK.The London mayor made the remarks on a trade trip to Japan days after one of his possible Tory leadership rivals, Theresa May, gave a speech saying high immigration delivered almost no economic benefits. Continue reading...
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by Patrick Wintour Political editor on (#QD3J)
Chancellor seeks to exploit party’s disarray over economic policy following budget surplus U-turn by shadow chancellor John McDonnellGeorge Osborne has moved to exploit Labour’s disarray on economic policy by urging its MPs to vote for government’s fiscal responsibility charter, and so reject the shadow chancellor’s last-minute U-turn.John McDonnell gave a series of explanations for his volte-face on the Treasury charter, which commits the government to produce budget surpluses at times of economic growth, and which he had said as recently as two weeks ago he would support. His reasons ranged from a meeting with redundant steelworkers in Redcar to a downturn in the world economy. Continue reading...
by Editorial on (#QCE4)
George Osborne’s fiscal charter is a silly game. John McDonnell is right to vote against it. But it’s a shame he couldn’t resist a little game-playing of his own before he made the decisionAs ridiculous as John McDonnell’s economic policy may appear in the wake of his about-turn on George Osborne’s fiscal charter, and it certainly looks pretty shambolic, it is important to acknowledge just how ridiculous is the proposal that the shadow chancellor is wrestling with. Mr Osborne wishes to enshrine a wrong-headed symbol in statute, for no purpose beyond creating havoc on the Labour benches. He promises surpluses for ever using the law, but nobody will be going to jail when they don’t arrive.Even if the economy hummed to the point where the government was in the black, does anybody seriously imagine that Conservative MPs would sit passively for years on end when tax rates were higher than they needed to be? Does anybody dispute the arithmetic which demonstrates that a 2% GDP deficit will eventually result in a perfectly manageable public debt ratio of 40% GDP, just so long as nominal national income can be persuaded to grow at around 5% annually, as it generally did before Mr Osborne was in charge? Does anybody contest, either, that there are productivity-boosting investments which it is worth a government borrowing for, or indeed that the great lesson of the last few years is that it is important for the economic authorities to retain discretion to deal with nasty unknown unknowns? Continue reading...
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by Letters on (#QCA6)
The closure of Redcar steelworks (Report, 13 October) shows the importance of boosting energy productivity to tackle high energy costs. Over half (54%) of the energy used in electricity is lost before it even reaches us, and is worth £9.5bn annually – enough to pay half the electricity bill of every home in Britain. Wasted energy reduces our productivity and undermines efforts to create a competitive, modern economy. With energy costs on an upward trajectory and ever tightening carbon budgets, urgent action is needed. New analysis identifies how to cut much of this waste and save bill payers more than £3.9bn a year.How? By focusing on a best-value energy policy, improving energy productivity and giving businesses a simple policy to leverage investments in energy efficiency. Unlocking energy productivity will strengthen the economy and protect jobs. Carbon emissions will decline. The environmental impact of new energy infrastructure will reduce. Energy costs will go down. Businesses will be able to do more with less. As the secretary of state for energy and climate change, Amber Rudd, approaches her planned energy policy “reset†and the comprehensive spending review, now is the right time to transform this wasteful inefficiency into a huge growth opportunity for the UK economy. Continue reading...
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by Katie Allen on (#QC8G)
Report on 34 OECD member countries says gap between rich and poor households is highest in 30 years and is reducing children’s opportunitiesA widening gulf between rich and poor parents is skewing opportunities available to their children, according to a new report that warns the young are paying a high price for rising inequality around the world.
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by Graeme Wearden (until 2pm) and Nick Fletcher on (#QA7N)
Rolling economic and financial news, from the latest wealth report to the UK inflation data
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by Frances Perraudin (now) and Andrew Sparrow (earlie on (#QAGA)
Rolling coverage of all the day’s political developments as they happen, including reaction to Labour’s U-turn over the charter for fiscal responsibility5.21pm BST5.00pm BSTLabour’s deputy leader, Tom Watson, has been invited to appear before the Home Affairs Select Committee on October 21st.Labour dep. leader Tom Watson invited to give evidence to Commons Home Affairs Committee re his sex abuse allegations against Leon Brittan4.51pm BSTIn some, er, lighter news – Liberal Democrat blogger Stephen Tall has paid a heavy price for betting on the BBC’s Daily Politics show in 2013 that he’d “run naked down Whitehall†if his party was reduced to just 24 MPs in the election.This is what happens, kids, if you make a daft pledge on TV. You've been warned. http://t.co/r5SWfRmCCT pic.twitter.com/LYn5ob33StThis guy in Whitehall lost bet during election over number Lib Dem MPs would be left - he lost! .@Daily_Politics pic.twitter.com/lpVhQPsGD74.15pm BSTMPs have been debating the government’s immigration bill in the commons this afternoon. The bill would make renting out accommodation to illegal immigrants a criminal offence. Labour has tabled a wrecking amendment to the bill, with shadow home secretary Andy Burnham warning that it could lead to the modern equivalent of the “no dogs, no blacks, no Irish†signs. Here are some key points so far –4.01pm BSTFrom the Daily Mail’s deputy political editor –Did Michael Gove brief Jeremy Corbyn on Saudi deal to help bounce David Cameron into u-turn? Some Tory MPs think so...3.02pm BSTThe Scottish Labour leader, Kezia Dugdale, has been speaking to the BBC, denying that she urged McDonnell to change his position on the fiscal charter.I didn’t warn anyone off. I did speak to Jeremy Corbyn and his team over the weekend about the need to demonstrate that the Labour Party is the only anti-austerity party in the UK, so it is a good move.2.24pm BSTThis is an interesting tweet from the BBC’s political editor –All sorts of reasons why McDonnell U turn on budget surplus not a laughing matter, including that Corbyn himself had no idea it was coming2.17pm BSTJohn McDonnell has been speaking to broadcasters this lunchtime, explaining his decision to oppose the government’s fiscal charter."I've changed my mind on the parliamentary tactics" says John McDonnell of Labour's U-turn on fiscal policy https://t.co/O8DjMHnlOlI have changed my mind, but I haven’t changed my mind on the principles of what the charter is standing for which is we need to tackle the deficit and we will tackle the deficit. Labour will tackle the deficit – we are not deficit deniers, I haven’t change my mind on that.But I have changed my mind on the parliamentary tactics. Originally what I said to people was look that charter is a political stunt, it’s a political trap by George Osborne, it is virtually meaningless – he ignores it himself time and time again, he never meets his targets. So [I said], this is just a stunt and let’s ridicule it in the debate and vote for it because it’s a meaningless vote.2.12pm BSTThe Guardian’s home affairs editor Alan Travis has this analysis of the decision to scrap the Saudi prisons deal. The headline is: “Michael Gove emerges as human rights hero over bid to scrap Saudi prisons dealâ€. Here’s an extract –Michael Gove, in his new role as justice secretary and lord chancellor, is rapidly turning into a highly unlikely hero of the liberal left.The credits had hardly finished rolling on Monday’s BBC Panorama, showcasing Gove’s summer study tour to Texas to see how they are cutting their burgeoning prison population, before fresh details of his cabinet battle over a Saudi prison contract emerged.2.05pm BSTThe debate is now over, but my colleague – who was in the chamber – said that Conservative MP Daniel Kawczynski was handed a note part-way through (from a whip telling him not to speak in the debate?) which he then slung to the ground shouting “disgracefulâ€.He is the former chair of the all-party parliamentary group on Saudi Arabia and has strongly-held views on critiques of the country’s human rights record. See below.1.54pm BSTConservative MP Peter Bone asks how the “difficult balancing act†between human rights and national interest works in practice.Gove says the UK engages with the Saudi government on every level. The balancing act is guided by Britain’s national interest and keeping British citizens safe, but also by promoting the values that the British hold.
by Rowena Mason, Frances Perraudin and Patrick Wintou on (#QBK0)
Shadow chancellor attributes change of heart, fiercely criticised by his own MPs, to meeting Teesside steelworkers who were made redundant
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by Larry Elliott on (#QB1P)
Inflation is being dragged down by overseas factors but forced up by domestic pressures. Arithmetic dictates it must rise soon – unless the global economy tanksThis is going to be a record-breaking year for UK inflation. Not since the interwar period has upward pressure on the cost of living been as persistently weak as it has since the start of 2015.Consider the numbers. In January, inflation as measured by the consumer prices index, stood at 0.3%. In the next eight months, it was zero four times, up by 0.1% twice and down by 0.1% twice. The latest data shows that it costs 0.1% less to buy the basket of goods and services chosen by the Office for National Statistics to measure inflation than it did in September 2014.Related: UK inflation dips below zero again Continue reading...
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by Guardian Staff on (#QAW7)
Labour MP Chris Leslie tells BBC Radio 4’s Today programme that shadow chancellor John McDonnell must explain his U-turn on Labour’s support for government plans to force future administrations to keep a budget surplus. Leslie, McDonnell’s predecessor as shadow chancellor under Harriet Harman’s leadership of the party, says McDonnell is sending the wrong economic message to the public
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by David Kirkby on (#QAR6)
The Tories have declared themselves to be the workers’ choice, but they need to focus more on the self-employed and ensure people have the skills they needAt the Conservative party conference last week, David Cameron declared his was now the party for working people not merely today but “tomorrow, alwaysâ€. It was a bold claim and not one to be taken lightly. Four days in Manchester were knitted together by the question of how to be on the side of workers. Conservatives think that by addressing this now, they can build a political legacy that will endure.Related: The rebranding of the Tories as the workers’ party is a shameless lie | Owen JonesRelated: The Tories pretend to be the workers' party while hanging on to elitism | Suzanne Moore Continue reading...
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by Karim Palant on (#QAMQ)
The shadow chancellor should never have pledged to support Osborne’s fiscal charter – it’s far more pro-austerity than anything the pre-2015 Labour party stood forOn Wednesday, parliament votes on George Osborne’s new fiscal charter. This obscure decision has major consequences for the political debate. Wednesday’s will be the fourth such vote in five years – thanks to the chancellor’s missed targets and obsessive politicking.This latest vote – freed of coalition – provides not for a current budget surplus but an overall surplus with a deadline of 2019/20.Related: Corbyn and McDonnell face major Labour backlash after fiscal charter U-turn - Politics liveRelated: Jeremy Corbyn has blown his chance to revive Labour in Scotland | Iain Macwhirter Continue reading...
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by Katie Allen and Rupert Jones on (#QAMS)
ONS says fall in road fuel cost and a less-than-expected rise in clothing prices are behind latest drop in inflation to -0.1%Inflation in Britain has dipped below zero for the second time this year, easing pressure on the Bank of England to raise interest rates from their record low.Smaller than usual rise in September clothing prices & falling motor fuel prices were main factors behind #CPI fall http://t.co/x4rFzgjqulRelated: UK inflation: pushed and pulled from without and withinInflation at -0.1% while wages rising at fastest rate in over a decade is a real boost for budgets of working familiesWe shouldn't mistake this for damaging deflation: we remain vigilant and our system is designed to deal with such risks Continue reading...
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by Frances Perraudin and Patrick Wintour on (#QADK)
Former shadow chancellor Chris Leslie says his successor needs to explain last-minute change after angry parliamentary party meeting
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by Katie Allen on (#QA2S)
Economists expect inflation to have remained unchanged in September but core inflation predicted to edge upFalling pump prices and a cut in energy bills by British Gas are expected to have kept inflation at zero last month, putting little pressure on the Bank of England to raise interest rates from their record low any time soon.Official figures on inflation due at 9.30am are forecast to show no change in the consumer prices index measure. Against the backdrop of tumbling global commodity prices, from food to oil, inflation in the UK has been at or close to zero since February, well below the Bank’s target of 2%. Continue reading...
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by Reuters on (#QA1S)
Imports were down for the 11th month in a row, according to official figures, but there are signs that demand for the country’s exports is picking upChina’s imports fell heavily in September, official figures said, keeping pressure on policymakers to do more to stave off a sharper economic slowdown.Although exports fell less than expected by 3.7% from the same period last year, the value of imports tumbled more than 20% to register the 11th straight month of falls.Related: The world economic order is collapsing and this time there seems no way out | Will HuttonRelated: Western economies are still too weak to cope with Fed rate rise, says China Continue reading...
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by Daniel Hurst Political correspondent on (#Q9TR)
Proposals include requirement for employers to look for local workers before overseas labour and an increase in mimimum pay for foreign workersThe Turnbull government appears set to reach a deal to secure passage of the China-Australia free trade agreement (Chafta) after it vowed to consider the opposition’s demands “in good faith†in a bid to resolve the long-running political dispute.On Tuesday the federal Labor party signed off on its proposed amendments to the Migration Act, which would form the basis of negotiations with the government aimed at passing legislation necessary to implement Chafta.Related: China free trade agreement must not 'slip through our fingers', official warns Continue reading...
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by Guardian Staff on (#Q9EH)
Democratic presidential candidate Bernie Sanders says on Monday that the creation of jobs is not truly beneficial unless those jobs come with a higher minimum wage. The current federal minimum wage is $7.25. Speaking at the No Labels Problem Solver Convention in New Hampshire, Sanders says people who work two or three jobs should not be living in poverty Continue reading...
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by Katie Allen on (#Q9E2)
British Retail Consortium says like-for-like sales grew at fastest annual pace for six months in September, buoyed by demand for snacks and alcoholDemand for beer and party food for Rugby World Cup watchers and school shoes for the new term helped lift retail sales last month, according to industry figures.In the latest report to indicate consumer spending remains the main driver of economic growth, the British Retail Consortium (BRC) said like-for-like sales grew at the fastest annual pace for six months in September. Continue reading...
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by Graeme Wearden on (#Q6XY)
Economists are applauding the decision to recognise Edinburgh-born microeconomist Angus Deaton for his analysis of consumption, poverty, and welfare.
by Editorial on (#Q8T0)
Evidence is more abundant than ever in economics. But Osborne prefers to sweep the awkward facts awayThe first analysts of family budgets were Rev David Davies and Sir Frederick Morton Eden in the 18th century. Their purpose, the new economics Nobel laureate Angus Deaton notes in his book on household surveys and public policy, was to highlight working-class distress. These pioneers produced powerful pictures of penury but, grabbing at evidence wherever they found it, they were engaged in reportage rather than science.More systematic assessment of social trends had to await the evolution of statistical theory, the arrival of big, randomly sampled surveys, and finally computers to crunch the results. The combined effect has been to distil something solid from thin air. Economics remains the dismal science when it comes to prediction, but it has made strides in measuring the facts, and gauging the diverse ways in which they play out for different people. Deaton’s singular contribution has been to disentangle the economy-wide swings in spending and saving from the decisions and the circumstances that confront particular individuals. But there are obvious parallels with the work of Anthony Atkinson and the bestselling Thomas Piketty on inequalities in income and wealth, and indeed with the efforts of civil servants and thinktanks which can now calculate, with half-decent precision, the immediate winners and losers from any tax and benefit reforms. The availability and intelligent analysis of surveys of citizens has steadily allowed for conjecture to be displaced by arithmetic. Continue reading...