{"id":2412,"date":"2021-10-06T10:25:55","date_gmt":"2021-10-06T09:25:55","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/10\/06\/news-in-review-26\/"},"modified":"2022-07-05T14:10:06","modified_gmt":"2022-07-05T13:10:06","slug":"news-in-review-26","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/10\/06\/news-in-review-26\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u201cHousehold saving fell particularly strongly in the latest quarter\nfrom the record highs seen during the pandemic\u201d<\/em><\/strong><\/p>\n<\/div>\n\n

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The\neasing of COVID restrictions has resulted in an economic rebound that has\nexceeded initial estimates, according to data from the Office for National\nStatistics (ONS). During Q2, the economy grew by 5.5%, up from the 4.8%\nforecast earlier this year. This is a result of higher spending since April,\nwhen the first lockdown easing permitted outdoor dining, in addition to a\nsignificant drop in saving as the economy reopened. <\/strong><\/strong><\/p>\n<\/div>\n\n

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Deputy\nNational Statistician at the ONS, Jonathan Athow, commented, \u201c<\/em><\/strong>Household\nsaving fell particularly strongly in the latest quarter from the record highs\nseen during the pandemic, as many people were again able to spend on shopping,\neating out and driving their cars.\u201d<\/em><\/p>\n<\/div>\n\n

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However,\nthe latest data suggests that growth is beginning to slow, with the July\n\u2018pingdemic\u2019 and current supply chain issues putting the brakes on recovery. The\nmonthly growth figure in July was just 0.1%, a sharp drop from 1.4% in June.\nThis was reflected in the Bank of England\u2019s latest GDP forecast, which revised\nits predictions for Q3 growth down to 2.1% from a previous forecast of 2.9%.<\/p>\n<\/div>\n\n

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Furlough ends<\/strong><\/strong><\/p>\n<\/div>\n\n

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On 30 September, the Coronavirus Job\nRetention Scheme, or furlough scheme, which has helped to pay the wages of 11.6\nmillion workers over the course of the pandemic, finally came to a close. For\nthe estimated one million workers still being supported by the scheme in\nSeptember, the future is uncertain. Forecasts from the National Institute of\nEconomic and Social Research (NIESR) and Dutch financial services firm, ING, in\nAugust, suggested that the unemployment rate will rise following the scheme\u2019s\nend, with NIESR predicting that it will rise to 5.4% and ING predicting an\nincrease to 5.5%. This is in contrast to the Bank of England\u2019s own predictions,\nwith the central bank stating it believed that unemployment has now peaked and\nwill continue to fall in spite of furlough\u2019s end. <\/p>\n<\/div>\n\n

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Renewal of other job support schemes <\/strong><\/strong><\/p>\n<\/div>\n\n

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Rishi Sunak used his Conservative\nParty conference speech on Monday to commit \u00a3500m to renew other job support programmes\nset up during the pandemic. Specifically, the Kickstart Scheme, which\nsubsidises eligible jobs for young people aged\n16 to 24 on Universal Credit, will be extended to March 2022 and the Job Entry Targeted Support (JETS<\/em>) scheme, which\nhelps long-term unemployed people on Universal Credit, will be extended until next\nSeptember. Further details will be confirmed at the Spending Review on 27\nOctober, when it is presented alongside the Budget. The\nChancellor spoke about how the government\u2019s\nrecovery approach focuses on \u201cgood work, better skills and higher wages.\u201d<\/em>\n<\/p>\n<\/div>\n\n

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Market news<\/strong><\/strong><\/p>\n<\/div>\n\n

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Some global indices recovered losses on\nTuesday, after several large technology firms lost ground on Monday, as\nconcerns intensified over increasing raw material prices adding to\ninflationary pressures. Markets received a boost as oil prices headed to multi-year\nhighs, following the Organization of the Petroleum Exporting Countries, Russia\nand their allies\u2019 (OPEC+) decision to continue gradually increasing\noutput. <\/p>\n<\/div>\n\n

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Rapid house price growth continues in\nSeptember<\/strong><\/strong><\/p>\n<\/div>\n\n

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The Stamp Duty holiday \u2018taper\u2019 threshold ended\non Thursday in England and Northern Ireland, with the nil-rate threshold of\n\u00a3125,000 reinstated for the first time since July 2020. Predictions of a house\nprice slump have not been realised so far, despite the maximum tax savings\nfalling from \u00a315,000 to \u00a32,500 from 30 June. Double-digit house price growth\ncontinued into September, with Nationwide house price data calculating that\nprices had increased by 10% year-on-year.<\/p>\n<\/div>\n\n

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Those trying to get onto the property ladder\ncontinue to face the difficulty of raising enough money for a deposit, with a\n20% deposit on the average first-time buyer home now standing at a record 113%\nof gross income. For those who have raised the funds, there is a silver lining:\nmortgage rates are currently at record lows, with some lenders introducing\nmortgage deals under 1%. <\/p>\n<\/div>\n\n

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Here to help<\/strong><\/strong><\/p>\n<\/div>\n\n

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Financial advice is\nkey, so please do not hesitate to get in contact with any questions or concerns\nyou may have.<\/p>\n<\/div>\n\n

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The value of investments can go down as well as up and you may not get\nback the full amount you invested. The past is not a guide to future\nperformance and past performance may not necessarily be repeated.<\/strong><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u201cHousehold saving fell particularly strongly in the latest quarter from the record highs seen during the pandemic\u201d The easing of COVID restrictions has resulted in an economic rebound that has exceeded initial estimates, according to data from the Office for National Statistics (ONS). During Q2, the economy grew by 5.5%, up from the 4.8% forecast […]<\/p>\n","protected":false},"author":12,"featured_media":2413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,112],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/2412"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=2412"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/2412\/revisions"}],"predecessor-version":[{"id":2414,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/2412\/revisions\/2414"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/2413"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=2412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=2412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=2412"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=2412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}