{"id":26763,"date":"2024-10-30T10:21:24","date_gmt":"2024-10-30T10:21:24","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2024\/10\/30\/news-in-review-177\/"},"modified":"2024-10-30T10:27:57","modified_gmt":"2024-10-30T10:27:57","slug":"news-in-review-177","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2024\/10\/30\/news-in-review-177\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u2018We observe good prospects of a soft landing of the global economy\u2019<\/em><\/strong> <\/p>\n<\/div>\n\n

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The International Monetary Fund\u2019s (IMF\u2019s) new <\/strong>World Economic Outlook entitled \u2018Policy Pivot, Rising Threats,\u2019 outlines global growth expectations of 3.2% in both 2024 and 2025. The international soothsayer predicts that rate cuts are <\/strong>\u2018poised\u2019 <\/em><\/strong>to continue, inflationary pressures will ease, growth will be modest, while geopolitical risks <\/strong>\u2018remain threats to global stability and growth.\u2019<\/em><\/strong> <\/p>\n<\/div>\n\n

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At the IMF and World Bank annual meetings in Washington, IMF Director Kristalina Georgieva cautioned that a potential high debt, low growth route for the global economy will leave governments with diminished resources to improve opportunities and address challenges like climate change, adding, \u201cThese are anxious times with these problems in mind.” <\/em> <\/p>\n<\/div>\n\n

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The IMF projects UK growth to reach 1.1% this year and 1.5% in 2025 as \u2018falling inflation and interest rates stimulate domestic demand.\u2019<\/em> <\/p>\n<\/div>\n\n

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Finance leaders and central bank governors from developed and emerging economies who had gathered at the event jointly issued a statement expressing optimism, \u2018We observe good prospects of a soft landing of the global economy, although multiple challenges remain.\u2019 <\/em> <\/p>\n<\/div>\n\n

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Praising \u2018well-calibrated monetary policies\u2019 <\/em>that have helped to control inflation, the finance professionals spoke about a joint commitment to resist protectionism to support fair and open global trade. <\/p>\n<\/div>\n\n

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Rachel Reeves\u2019 maiden Budget <\/strong> <\/p>\n<\/div>\n\n

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Speculation over the Labour government\u2019s Budget has been rife for weeks. As news flow intensifies, likely targets for tinkering include pensions, Inheritance Tax (IHT) and Capital Gains Tax (CGT), areas which have received the most attention in the lead up to the Budget. Property could also be in the Chancellor\u2019s sights, with possible changes to Council Tax bands, Stamp Duty and CGT. Businesses are concerned over possible National Insurance increases for employers. <\/p>\n<\/div>\n\n

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On Monday, the Prime Minister said the Budget will embrace the “harsh light of fiscal reality<\/em>” but “better days are ahead.\u201d<\/em> Preparing the country for tax rises, Keir Starmer said he would “run towards”<\/em> challenges and would not “continue the pretence that you can always have lower taxes and that your public services will run properly.\u201d<\/em> <\/p>\n<\/div>\n\n

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Rachel Reeves will present the latest economic forecast from the independent Office for Budget Responsibility (OBR) alongside her inaugural Budget on Wednesday. <\/p>\n<\/div>\n\n

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Consumers <\/strong>\u201cholding their breath\u201d<\/em><\/strong> <\/p>\n<\/div>\n\n

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Released last Friday, GfK\u2019s consumer confidence survey edged down from -20 in September to -21 in October, in line with the median forecast in a Reuters poll of economists. The lowest reading since March, British consumer confidence is being impacted by concerns about possible tax hikes in the Budget. Neil Bellamy, Consumer Insights Director, NIQ GfK,<\/strong> commented on the new data set, “As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation\u2026 This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what\u2019s in store for them on October 30.”<\/em> <\/p>\n<\/div>\n\n

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Manufacturing sentiment weakens<\/strong> <\/p>\n<\/div>\n\n

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The latest Confederation of British Industry (CBI) quarterly Industrial Trends survey has shown manufacturing sector sentiment fell during October at the fastest pace in two years. Over the quarter to October, output volumes fell, as did total new orders. Looking ahead, a decline in new orders is predicted, with over two thirds of survey respondents expecting order book strength is a key factor limiting output over the next quarter. Price and cost pressures have receded from July. According to CBI Lead Economist Ben Jones, \u201c<\/em>The recent downturn is expected to bottom out in the coming quarter, which is encouraging\u2026 amid a more uncertain outlook manufacturers have scaled back their plans to invest in buildings, capital equipment, innovation and training.\u201d<\/em> <\/p>\n<\/div>\n\n

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Commenting on the upcoming Budget, Mr Jones said, \u201cWhile possible tax rises remain a concern, firms believe that clarity over future tax plans, measures to enhance productivity, and the country\u2019s net zero trajectory can all help cement the path to long-term growth\u2026 Manufacturers will be looking to the Chancellor to deliver a confidence-boosting Budget that supports business and greases the wheels of investment.\u201d<\/em>  <\/p>\n<\/div>\n\n

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

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Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you 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 back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.<\/strong> <\/p>\n<\/div>\n\n

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All details are correct at time of writing (30 October 2024)<\/em><\/strong> <\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u2018We observe good prospects of a soft landing of the global economy\u2019  The International Monetary Fund\u2019s (IMF\u2019s) new World Economic Outlook entitled \u2018Policy Pivot, Rising Threats,\u2019 outlines global growth expectations of 3.2% in both 2024 and 2025. The international soothsayer predicts that rate cuts are \u2018poised\u2019 to continue, inflationary pressures will ease, growth will be […]<\/p>\n","protected":false},"author":12,"featured_media":26764,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/26763"}],"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=26763"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/26763\/revisions"}],"predecessor-version":[{"id":26765,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/26763\/revisions\/26765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/26764"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=26763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=26763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=26763"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=26763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}