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The Guardian - UK
The Guardian - UK
Business
Graeme Wearden

Global public debt to hit $100tn this year, says IMF, as economic uncertainty threatens financial stability and growth – as it happened

United Kingdom Unemployment NHS Office for National Statistics the Office for National Statistics
The International Monetary Fund (IMF) headquarters in Washington
The International Monetary Fund (IMF) headquarters in Washington Photograph: Yuri Gripas/Reuters

Closing post

Time to wrap up… here are today’s main stories:

UK employer national insurance hike threatens jobs and pay rises, firms warn

British employers have warned that a rise in employer national insurance contributions in the budget could hit hiring and limit pay rises, hurting businesses including pubs, hotels and restaurants.

Keir Starmer and the chancellor, Rachel Reeves, have refused to rule out a rise in employer contributions in the budget on 30 October, as part of plans to plug what the government says is a £22bn hole in the public finances left by the previous Conservative government.

The head of UK Hospitality, which represents bars, pubs, restaurants and hotels, said such a move would be a tax on jobs.

“An increase would particularly hammer sectors like hospitality, where staffing costs are the biggest business expense,” said Kate Nicholls, the group’s chief executive.

“Hospitality businesses are much less able to stomach yet another cost increase, when they’re already managing increases in other areas like wages, food, drink and energy.”

IMF: Uncertainty is high, and it's bad for financial stability and growth

The global economy is a volatile place and politicians trying to cope with the ups and downs should be cut some slack, the International Monetary Fund appears to be saying in its latest message ahead of the Washington-based organisation’s annual meetings next week.

Uncertainty about where the global economy is going has been higher since the Covid-19 pandemic and the inflation shocks that followed Russia’s invasion of Ukraine, the IMF says in an advanced chapter of its Global Financial Stability Review, just released.

Rising tensions from the ongoing situation in Ukraine and the middle east conflict are only adding to the difficulties for all governments of making economic and social policies that give a degree of certainty to households and businesses.

Uncertainty, says the IMF, is a growth killer. The lender of last resort says it has evidence from the 2008 banking crash, when the lack of certainty reduced GDP growth a year ahead by 1.2 percentage points on average in advanced and emerging market economies.

The uncertainy also persuades central banks to keep interest rates higher than they would otherwise do, crippling with higher interest bills those businesses and governments that have allowed their debts to pile up in the good times, when interest rates were low.

However, politicians are not entirely off the hook. The IMF says governments should avoid the temptation to loosen regulations that allow for reckless borowing to boost growth. It said politicians should maintain and enhance regulations limiting the risks that banks and other financial services can take.

Governments should also “build adequate international reserve buffers and allow exchange rate flexibility to help cushion the adverse spillover effects of an increase in foreign macroeconomic uncertainty”, the Fund says.

This is a message to Beijing and Washington to resist promoting a strong currency as a policy goal when that can distort global financial markets.

Rachel Reeves has been urged to abandon Labour’s manifesto promise and raise national insurance for workers in the budget – by her former boss at the Bank of England, Mervyn King.

In an article for the Independent, King says that it was “reckless” for the Tories to cut national insurance before the general election, that both main parties were “irresponsible” when they said they would not reverse those cuts and that it would be best for the government to put it back up.

Shares in computer chip equipment maker ASML have fallen sharply this afternoon after the company’s third quarter earnings were published early in an apparent error and showed the company was downbeat on its 2025 sales.

They showed that chief executive Christophe Fouquet said in a statement:

“We expect our 2025 total net sales to grow to a range between 30-35 billion euros, which is the lower half of the range that we provided at our 2022 Investor Day,”

Shares were down 15% at €673.60.

BMW chief says EU combustion engine ban will shrink car industry

The EU’s plans to ban the manufacture of traditional combustion engines from 2035 will shrink the industry, BMW’s chief executive has warned as the German car industry battles with increased competition from China in the electric vehicle sector.

In a comment that will alarm Brussels, Oliver Zipse told the Paris motor show the 2035 cutoff point for CO2-emitting cars was “no longer realistic”.

The ban “could also threaten the European automotive industry in its heart,” Zipse said. The measures will “with today’s assumptions, lead to a massive shrinking of the industry as a whole”.

Investment giant BlackRock gave the UK a thumbs-up today, advising clients to buy British government debt.

BlackRock’s research arm upgraded its call on UK government bonds to overweight from neutral.

They predicted the Bank of England will slash interest rates faster than expected by markets, meaning the current rates of return on bonds will not be available for long.

“We are overweight,” BlackRock strategists including Wei Li wrote in a weekly note, adding:

“Gilt yields offer attractive income, and we think the Bank of England will cut rates more than the market is pricing given a soft economy.”

Bloomberg has more details.

Updated

Back in the US, shares in pharmacy chain Walgreens Boots Alliance have jumped over 4% in premarket trading after it announced a store closure programme.

Walgreens Boots plans to shut 1,200 stores over the next three years.

Energy provider SSE have reportedly rebuffed a merger approach from Portuguese utility EDP.

According to Reuters, EDP approached SSE before the summer about a possible merger, but were turned down. Sources say the two companies are not currently in talks.

Shares in SSE have jumped by 1.5%, while EDP are 1.2% higher today.

Factory activity in New York state weakens

Just in: Manufacturing activity in New York state has weakened, in a worrying sign for the US economy.

The monthly Empire State Manufacturing Survey, produced by the New York Federal Reserve, has found that business conditions have weakened this month.

Factory bosses reported that new orders, and shipments, both weakened in October.

This helped to pull the general business conditions index down by twenty-three points to -11.9 this month.

Richard Deitz, economic research advisor at the New York Fed, says:

“Manufacturing activity contracted modestly in New York State in October, with firms reporting that new orders declined.

Despite this contraction, employment expanded for the first time in a year, though by a small degree, and optimism about the outlook grew strongly.”

Boeing’s share price has risen slightly in pre-market trading, up over 1%, after it announced its new $10bn credit agreement and plans to raise $25bn in debt and equity.

Boeing secures $10bn credit agreement to support balance sheet

Boeing has also agreed a $10bn credit agreement with a consortium of major banks.

The deal, with Bank of America, Citibank, Goldman Sachs and JPMorgan Chase will help Boeing shore up its balance sheet, which is under more pressure as its workers’ strike continues.

Boeing to raise up to $25bn to shore up balance sheet

Troubled aeroplane maker Boeing is looking to raise $25bn from investors.

Booeing has issued a regulatory filing explaining that it plans to raise the money through issuing new debt and equity.

The fund-raising comes as the strike by Boeing workers enters its second month.

Employees walked out in mid-September after rejecting a pay offer, putting the company into a deeper financial crisis, and the two side have not made a breakthrough since.

Yesterday, U.S. Acting Labor Secretary Julie Su met with the company and unions in Seattle in a bid to break the deadlock.

Boeing factory workers are expected to hold a large rally in Seattle later today to demand a better wage deal.

Late last week, CEO Kelly Ortberg announce Boeing will cut 17,000 jobs -- 10% of its global workforce -- and delay first deliveries of its 777X jet by a year, due to the strike.

Updated

Goldman Sachs profits jump 45%

Profits have surged at investment bank Goldman Sachs.

Goldman has reported pre-tax profits of $3.987bn for the third quarter of this year, up from $2.756bn in Q3 2023.

Revenues at its Global Banking & Markets division rose by 7%, to $8.55bn, including a “strong performance in equities” and record quarterly net revenues in Fixed Income, Currency and Commodities (FICC) financing.

David Solomon, chairman and chief executive officer, says:

Our performance demonstrates the strength of our world-class franchise in an improving operating environment.

We continue to lean into our strengths – exceptional talent, execution capabilities and risk management expertise – allowing us to effectively serve our clients against a complex backdrop and deliver for shareholders.”

Global public debt to pass $100tn this year, warns IMF

Global public debt is on track to exceed $100tn by the end of this year, the International Monetary Fund has warned.

In its latest fiscal monitor report, the Fund says:

Global public debt is very high. It is expected to exceed $100 trillion, or about 93% of global gross domestic product by the end of this year and will approach 100% of GDP by 2030.

This is 10 percentage points of GDP above 2019, that is, before the pandemic.

The IMF is worried that this high debt reduces the fiscal space available to governments to respond to economic downturns, making it harder to make growth-enhancing investments.

It also raises the risk of sovereign distress – ie, countries struggling to repay their debts.

The Fund is also concerned that the fiscal outlook of many countries might be worse than expected – it cites three reasons: large spending pressures, optimism bias of debt projections, and sizable unidentified debt.

It adds:

And countries will need to increasingly spend more to cope with aging and healthcare; with the green transition and climate adaptation; and with defense and energy security, due to growing geopolitical tensions.

This means that debt-to-GDP ratios in five-years time could be as much as 10 percentage points of GDP higher than projected on average, it warns – if, for example, growth was weaker than expected or financial conditions are tighter.

Updated

Russia news service RIA is reporting that the Russian Prosecutor General’s Office is seeing more than €1bn in damages from energy giant Shell.

Earlier this morning, the Moscow Arbitration Court agreed to hold a preliminary hearing for December 11 on the Prosecutor General’s Office’s lawsuit against Shell.

It was reported last week that Moscow was looking to recover around $1bn awarded to Shell when Russia expropriated its stake in the country’s Sakhalin 2 oil and gas development in 2022.

Updated

Oil prices have fallen further, after the IEA predicted a ‘sizeable surplus’ in the new year (see last post).

Brent crude is now down 4.7% so far today at $73.81 per barrel (still nearly a two-week low), a drop of $3.65 per barrel.

IEA: Oil market heading for sizeable surplus

The global oil market is heading towards a “sizeable surplus in the new year”, the International Energy Agency has predicted.

In its monthly oil market report, the IEA points out that the global oil market looks “adequately supplied”.

They predict that global oil demand is expected to grow by just under 900 kb/d in 2024 and by around 1 mb/d in 2025, significantly lower than the 2 mb/d seen in 2023.

But oil suppy is set to rise faster, with non-Opec members set to increase supply by 1.5 million barrels per day this year, and in 2025.

The IEA says:

The United States, Brazil, Guyana and Canada are set to account for most of the increase, boosting output by over 1 mb/d both years, which will more than cover expected demand growth.

The IEA also points out that it could act quickly, if there is significant disruption to supplies, saying:

IEA public stocks alone are over 1.2 billion barrels, with an additional half a billion barrels of stocks held under industry obligations. China holds a further 1.1 billion barrels of crude oil stocks, enough to cover 75 days of domestic refinery runs at current rates.

For now, supply keeps flowing, and in the absence of a major disruption, the market is faced with a sizeable surplus in the new year.

German economic confidence picks up, despite current problems

Economic confidence in Germany has improved this month, even though current conditions have worsened.

Economic research institute ZEW has reported that hopes of stable inflation, and cuts to eurozone interest rates, lifted optimism this month.

There are also hopes of a pick-up in exports to the eurozone, the USA, and China.

This has lifted the ZEW Indicator of Economic Sentiment for Germany to 13.1 points this month, a 9.5-point increase on September.

But, the assessment of the economic situation in Germany continued to worsen – dropping by 2.4 points to -86.9 points. Nearly nine out of ten respondents assessing the current economic situation as negative.

The most important news for the Bank of England today was wages, which are clearly on a slowing path, says economist George Buckley of Japanese bank Nomura.

He told clients:

That should give room for the BoE to cut rates again next month.

The unemployment rate is either at or below its equilibrium, and while vacancies have fallen to 2019 levels the market was reasonably tight back then.

Pension triple-lock rise could be higher than first thought

I missed this earlier, but the estimate for total pay growth across Britain in May-July has been revised up to 4.1%, up from 4.0% reported last month.

That’s not insignificant, as this is the earnings data used to set the pensions triple lock.

Last month, we calculated that a 4% rise would lift pensions by £460 a year….

… If it’s 4.1%, that would mean a £471 increase to the annual pension.

Updated

UK business insolvencies to peak at 12-year record high this year

UK business failures are on track to hit a 12-year high this year, new research shows.

Allianz Trade has predicted that UK business insolvencies will rise by 5% this year to over 29,000, a 12-year high and around 30% higher than pre-pandemic levels.

Insolvencies are then set to plateau, predicted to dip to 27,500 in 2025 and 26,300 in 2026.

Alllianz Trade says:

Firms have been struggling over the past years due to the succession of shocks and challenges, from Brexit-related issues and the Covid-19 shock, to strong monetary tightening and sticky inflation

As the UK’s growth momentum should recover heading into 2025, we expect a gradual relief for firms that would translate into slightly lower number of business insolvencies.

Their latest global insolvency report also flags that major insolvencies have also reached a new record high level, with Western Europe leading this trend. This also poses a major threat to employment, particularly in Europe and North America, they point out.

OECD Bribery group cancels visit to Hungary

Newsflash: The OECD Working Group on Bribery has cancelled a high-level mission to Hungary today, saying Budapest failed to engage with the visit.

The OECD Working Group on Bribery had been due to visit the Hungarian capital today and tomorrow, but scrapped the trip “after the Government of Hungary was unable to secure sufficient representation of Ministers and senior officials for the meeting”.

This is the first time a high-level mission has been cancelled, the OECD says.

The visit was set up to address the Government of Hungary’s failure to make tangible progress in addressing long-standing recommendations on bribery, it says.

The OECD explains:

These recommendations relate to the Government of Hungary’s lack of understanding of foreign bribery risk exposure, absence of strategy for proactively detecting and investigating foreign bribery cases, inadequate time to apply investigative measures and lack of legal clarity in relation to corporate responsibility for foreign bribery.

The Working Group also remains seriously concerned about Hungary’s low level of foreign bribery enforcement.

Back in January 2023, the OECD said Hungary should urgently implement long-standing OECD Anti-Bribery recommendations, enforce its foreign bribery laws and improve its engagement with the Working Group on Bribery. It warned then that no significant case of foreign bribery has been detected or investigated since March 2012.

Updated

Recruiter Robert Walters has reported that uncertainty over Rachel Reeves’s budget is cooling demand for new workers.

Net fee income at the company fell 19% in the UK in the third quarter of this year, including a 29% drop in recruitment across Britain’s regions.

Robert Walters says:

Clients [are] generally pausing activity pending clarity on employment legislation and fiscal measures of the new UK government in the late October Budget.

In Europe, net fees fell 13%, including a 17% drop in France where hiring was “muted” due to the Paris Olympics.

Analyst: worker power ending as pay growth slows

There seemed to be enough in this morning’s UK employment data to justify a rate cut in November, says analyst Neil Wilson of Markets.com.

Wilson writes:

Average earnings declined to 4.9% from 5.1%; and whilst the unemployment rate ticked down, employment fell by 35k, and vacancies were down; at 841k now 36% below the March 2022 peak.

Look around and you can see the end of the worker power in terms of openings and pay growth.

Analysis: Cooling labour market adds to Reeves’s tax-raising dilemma

Today’s UK jobs report gives a clear sign that the labour market is cooling.

And that adds to the dilemma facing chancellor Rachel Reeves, as she ponders how she can raise taxes to pay for better public services.

Yesterday, Reeves appeared to hint that she will raise employer national insurance contributions in the budget later this month.

But that would push up the cost of employing staff, just as demand for workers appears to be falling.

Our economics editor Larry Elliott writes:

Make no mistake, the labour market is in pretty good shape. There are a record number of people in work and the jobless rate stands at 4%. The 14 consecutive increases in interest rates between December 2021 and August last year have proved less damaging to jobs than expected.

That said, dearer borrowing costs have still had an impact and that has arrived – as it usually does – after a lag. The number of job vacancies fell by 34,000 between July and September – the 27th drop in a row and 36% below its peak in May 2022.

Meanwhile, the number of payrolled employees dropped slightly in September. The latest figures also suggest companies have put hiring on hold until they know what Reeves has in store on 30 October. The British Chambers of Commerce and the Institute of Directors have said businesses were particularly worried about a possible NI increase in the budget.

Slower earnings growth reflects weaker demand for labour. Annual total pay growth – including basic pay and bonuses – stood at 3.8% in the three months to August, down from 4.1% for the previous month and less than half the 8% a year earlier.

Here’s Larry’s analysis:

Updated

Oil price drops by 4%

The crude oil price has fallen sharply this morning, as fears ease that Israel might attack Iran’s oil facilities.

Brent crude, the international benchmark, has fallen by 4% this morning to $74.30 per barrel, a drop of over $3 per barrel. That’s its lowest level in almost two weeks.

US crude is also down around 4% at $70.80 per barrel.

The fall comes after the Washington Post reported that Israel’s prime minister Benjamin Netanyahu told US President Joe Biden that Israel’s retaliation against Iran for its ballistic missile attack earlier this month will not include strikes on non-military sites.

That suggests Israel is willing not to strike Iranian oil targets, which eased fears of disruption to supplies from the Middle East.

Traders are also pricing in weaker demand for energy, after the Opec cartel yesterday cut its forecast for demand growth this year, mainly due to weaker growth in China.

Shares in oil companies have fallen this morning, with BP down 3.35% and Shell losing 2.4% in early trading.

Airline shares are soaring, though, with EasyJet up 4.3% and IAG (which owns British Airways) 3.4% higher.

A falling oil price will also help to ease inflationary pressures, making it easier for central banks to lower interest rates.

Updated

Twice as many people are out of work sick than are officially unemployed, says Dr Helen Gray, chief economist of Learning and Work Institute:

This month’s data show that the number of people economically inactive due to long-term sickness remains elevated, at 2.8 million – double the number of people who are unemployed.

This highlights the need for the forthcoming White Paper on the Plan to Get Britain Working to focus on joining up work, skills and health, and providing support to the 9-in-10 out-of-work disabled people each year who do not currently receive help to find work.

Updated

Slowing pay growth is a sign of the Government’s “difficult inheritance” on the economy, a Treasury minister has said.

Responding to this morning’s data, exchequer secretary James Murray told Sky News:

“I think it’s a sign of the difficult inheritance we have had as a Government, that the economy has been in a difficult position for a number of years.

“What we are focused on now is what we can do as a Government to get us on a better track.”

Susannah Streeter, head of money and markets at Hargreaves Lansdown, suggests the Bank of England might squeeze in two interest rate cuts this year, at its two remaining meetings in November and December:

“Worrisome wage growth is in retreat, lifting expectations that borrowing costs will soon fall further. The rate of increase in average earnings (including bonuses) has fallen to 3.8%, a hugely significant drop given how pay growth had raced away in recent years.

Although there had been forecasts for an even steeper fall, and wages are still beating inflation, this will still assuage concerns among policymakers about the risk that consumer price rises will pop back up into troublesome territory.

The unemployment rate has dropped back, to 4%, which might give workers a little more bargaining power, but other data from across the recruitment industry highlighting wariness among employers who are hiring is likely to offset this in the short term. The pound has fallen further back against the dollar, to $1.303 after the wage data was published. It’s an indication of the firming up of expectations of a rate cut in November, with another follow up reduction likely in December too.”

Liz Kendall: Millions of people are locked out of work due to long term sickness.

There were 9.26 million people classed as economically inactive (not working, or looking for a job) in June-August, today’s labour force report shows.

That’s a drop of 120,000 over the quarter, but still near to record levels.

Work and Pensions Secretary, Liz Kendall MP is concerned about the number of peopel out of work due to long-term sickness:

“To get Britain growing again we need to get Britain working again. Millions of people are locked out of work due to long term sickness. This is not good for them, for our economy or for the taxpayer.

“That’s why we will bring forward the biggest reforms to employment support in a generation – overhauling jobcentres, delivering a Youth guarantee so every young person is learning or earning, and new work, health and skills plans to tackle inactivity – unlocking opportunity and potential in every area of the country.”

ONS data has shown that the majority of people inactive because of long-term sickness were aged 50 to 64.

Health secretary Wes Streeting has suggested that new weight-loss jabs could be given to unemployed people to help them get back into work:

Wages in Britain’s public sector grew faster than in the private sector over the summer.

Today’s earnings data shows that average regular earnings (ex-bonuses) in the public sector grew by 5.2% in June-August, down from 5.7% a month ago.

In the private sector, regular pay rose by 4.8% over the period, down from 5%, and the lowest rate since the three months to April 2022.

However, if you include bonuses… then total pay rose by 4.7% for private sector workers but just 0.1% over the last year in the private sector (because we’ve caught up with the bonuses paid to NHS and civil service staff in summer 2023).

Economists: November interest rate cut looks likely after wage growth slows

Several economists are predicting that today’s slowdown in pay growth will encourage the Bank of England to cut interest rates at its next meeting in early November.

Following the news that regular wage growth across Great Britain slowed to 4.9% in June to August, down from 5.1% a month ago, Ashley Webb, UK economist at Capital Economics, says:

The further fall in wage growth in August, together with some signs that the labour market continued to loosen gradually, adds further support to widespread expectations that the Bank of England will cut interest rates from 5.00% to 4.75% at the next policy meeting in November.

Luke Bartholomew, deputy chief economist at abrdn, says that “for now, another interest rate cut in November looks nailed on”, explaining:

“The labour market report is unlikely to move the dial much on interest rate expectations. Wage growth continues to gradually moderate, but still needs to come down further to be fully consistent with the Bank of England’s target.

As flagged in the introduction, a cut in November was already seen as an 83% chance. This morning, it’s inched up towards 85%.

Monica George Michail, associate economist at NIESR, says:

Easing wage pressures are supported by a notable fall in services sector pay growth, which recorded 3.6 per cent, down from an average of 5.6 per cent in the first half of this year. This is positive news for inflation and might provide the Bank of England with increased confidence regarding interest rate cuts”.

This time tomorrow we’ll be digesting the latest CPI inflation data, which will also have a significant impact on the Bank’s decision next month.

Kyle Chapman, FX markets analyst at Ballinger Group, says:

“UK ex bonus wage growth cooled from 5.1% to 4.9% in the three months to August and vacancies continued to contract, while an untrustworthy LFS unemployment figure fell again to 4.0%.

“The headline here is that the trend in the labour market is still going in the right direction for 2% inflation, and that should support a steady stream of rate cuts from the Bank of England. Labour demand is cooling off and that is returning some slack to the market, which is bringing down wage growth, and that should filter through into the all-important services inflation figure over the coming months.

“The report certainly won’t deter the BoE from cutting in November, although tomorrow’s CPI figures are likely to be much more significant. Policymakers will take the hot unemployment figure with a pinch of salt - I’m not sure anybody is taking it seriously right now given the volatility and its contrast with other indicators.”

The regional unemployment picture

In June to August, the highest employment rate in the UK was in the South West (78.8%) and the lowest was in Wales (69.8%), the Office for National Statistics reports.

The highest unemployment rate was in the North East (5.6%) and the lowest was in Northern Ireland (1.9%).

The highest economic inactivity rate was in Northern Ireland (28.5%) and the lowest was in the South West (18.6%).

Vacancies drop again

Companies are continuing to cut their vacancies – a sign that demand for labour is weakening, or of economic uncertainty.

Today’s jobs roert shows that vacancies in the UK decreased by 34,000 in July to September, to 841,000.

That’s the 27th drop in a row, as the hiring boom following the Covid-19 lockdowns continues to fade.

However, vacancies are still above pre-pandemic levels.

UK unemployment rate falls to 4%

The UK’s unemployment rate has fallen to its lowest since the start of this year, today’s labour force report shows.

The jobless rate has dipped to 4% in the June to August quarter, its lowest since the three months to January.

The number of people unemployed dropped to 1.386m, a fall of 141,000 in the quarter.

In contrast, the employment rate rose over the quarter, to 75%, up from 74.8% last month.

The economic inactivity rate (those neither working nor looking for work), slowed to 21.8% from 21.9%.

Introduction: UK wage growth slows

Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.

Wage growth across Great Britain has slowed, as companies cut the number of workers on their payrolls.

Data just released by the Office for National Statistics shows that regular pay (excluding bonuses) rose by 4.9% in June-August, down from 5.1% recorded in May-July.

UPDATED: Total earnings (including bonuses), rose by 3.8% in the quarter, again slower than the 4.1% recorded a month ago (which has been revised up from 4.0% first reported).

This growth rate is affected by the one-off bonus payments made to NHS and civil service staff in June, July and August 2023, the ONS points out.

This data is closely watched by the financial markets, as it will influence how quickly the Bank of England can lower UK interest rates.

Last night, a rate cut – from 5% to 4.75% – is seen as an 83% chance by the markets.

Although wage growth has slowed, earnings are still rising faster than inflation.

Using the CPI inflation measure, regular real pay rose by 2.6% on the year, lower than the previous three-month period when it was 3.0%. Total real pay rose by 1.7% on the year.

The ONS also estimates that the number of employees on company payrolls fell by 35,000 in August, and by another 15,000 in September (that’s an early estimate, though).

David Freeman, head of the ONS Labour Market and Household Division, says:

“Pay growth slowed again, with last year’s one-off payments made to many public sector workers continuing to affect the figures for total pay. However, earnings continue to rise faster than inflation.

“Over the last three months the number of people on payrolls has stayed broadly flat. The Labour Force Survey shows a different picture and we would advise caution when interpreting changes in these data while we continue to improve survey responses.

“Vacancies have fallen once more, with most industries seeing a fall on the quarter. However, the total still remains a little above its pre-pandemic level.”

The agenda

  • 7am BST: UK labour market report

  • 10am BST: ZEW economic sentiment index for Germany

  • 10am IEA monthly oil Market Report

  • 1.30pm NY Empire State manufacturing Index

  • 2pm BST: IMF begins publishing analytical chapters of its Global Financial Stability Report

  • 2.30pm BST: World Bank to release report on poverty and prosperity

Updated

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