{"id":7159,"date":"2022-07-20T11:43:36","date_gmt":"2022-07-20T10:43:36","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/07\/20\/news-in-review-64\/"},"modified":"2022-07-20T13:04:40","modified_gmt":"2022-07-20T12:04:40","slug":"news-in-review-64","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/07\/20\/news-in-review-64\/","title":{"rendered":"News in Review"},"content":{"rendered":"
\n

\u201cThe economy\nrebounded in May with growth across all main sectors\u201d<\/em><\/strong><\/p>\n<\/div>\n\n

\n

Data released from the Office\nfor National Statistics (ONS) last week shows how the UK economy returned to growth in\nMay, recording expansion of 0.5% during the month. After shrinking in April and\nMarch, the growth experienced in May was higher than the flat growth\nwidely anticipated by economists polled by Reuters.<\/strong><\/p>\n<\/div>\n\n

\n

Encouragingly, ONS Director of\nEconomic Statistics Darren Morgan said that \u201cthe economy rebounded in May\nwith growth across all main sectors\u201d<\/em> including manufacturing, construction\nand travel, while health was a prime driver. The all-important service sector grew\nby 0.4% and human health and social work activities increased by 2.1%. Travel\nagencies fared well with demand for summer holidays really taking off and\noutput in tour operation and travel agency industry surging by 11%. <\/p>\n<\/div>\n\n

\n

Mr Morgan commented on the good\nnews for manufacturing and construction, \u201cThere was widespread growth across\nmanufacturing after several tough months, while construction also fared well\nwith housebuilding and office refurbishment driving growth.\u201d<\/em> The UK\u2019s\nmonthly construction output rose by 1.5% on the month in volume terms in May\n2022, the seventh consecutive month of growth. <\/p>\n<\/div>\n\n

\n

Despite\nthe economy\u2019s more positive performance, wider expectations are for\ninflationary pressures to impact growth, especially with household incomes to\nbe squeezed further heading into the autumn as energy prices continue their\nascent.<\/p>\n<\/div>\n\n

\n

Current\nChancellor Nadhim Zahawi commented on the findings, \u201cIt\u2019s always great to\nsee the economy growing but I\u2019m not complacent. I know people are concerned, so\nwe are continuing to support families and economic growth.\u201d<\/em> He continued, \u201cWe\u2019re\nworking alongside the Bank of England to bear down on inflation and I am\nconfident we can create a stronger economy for everyone across the UK.\u201d<\/em><\/p>\n<\/div>\n\n

\n


\nNext PM needs an economic plan<\/strong><\/p>\n<\/div>\n\n

\n

With the competition for the next\nPrime Minister really hotting up and the two final candidates to be announced today,\nbusiness leaders have been airing their views on the requirement for the\ndevelopment of an economic plan to elevate the country from a low-growth\nenvironment. Representing 190,000 businesses, the Confederation of British\nIndustry (CBI) wrote an open letter to candidates for the leadership of the\nConservative Party, citing that they must develop \u2018serious, credible and\nbold plans for growth\u2019<\/em> in the face of some major challenges including \u2018eye-watering\u2019<\/em>\ninflation, supply chain disruptions and skills shortages. The letter outlined, \u2018Sustainable\neconomic growth must be at the heart of your manifestos. Without it, leadership\nambitions cannot be met nor those of the British people and businesses.\u2019<\/em><\/p>\n<\/div>\n\n

\n

Inflation will normalise \u2013 \u201cno ifs or buts\u201d<\/em><\/strong><\/p>\n<\/div>\n\n

\n

In a speech last week, Bank of\nEngland (BoE) Governor Andrew Bailey said that \u201cBringing inflation back down\nto the 2% target sustainably is our job, no ifs or buts<\/em>.\u201d Although Bank\nRate is on the rise, with further increases likely,it is expected thatlower interest rates will return once the effects of the pandemic and the\nwar in Ukraine fade. Bailey added, \u201cCyclical adjustments in short-term\nnominal interest rates \u2013 like those we are currently witnessing in the United\nKingdom and abroad \u2013 will for the foreseeable future continue to be played out\nagainst the backdrop of low global equilibrium real interest rates.\u201d<\/em> The\nBoE Governor told MPs last week that he still holds the view that inflation\nwill fall sharply next year.<\/p>\n<\/div>\n\n

\n

Markets<\/strong><\/p>\n<\/div>\n\n

\n

As the country grappled with the\nheatwave and sweltered in the hottest temperatures ever recorded, London stocks\nclosed above the waterline on Tuesday as concerns over potential interest rate rises and\ninflation cooled, with the FTSE 100 ending the\nsession up 1.01% at 7,296.28. The FTSE 250 ended up 1.41% at 19,282.59. European\nshares pushed higher on Tuesday following a Reuters report that Moscow would\nresume natural gas exports to Europe through the Nordstream 1 pipeline later\nthis week, after having been halted for ten days of annual maintenance. Wall Street stocks also closed in\npositive territory on Tuesday, supported by updates from some of the nation\u2019s\nbiggest banks and suggestions from Federal Reserve officials that they were\ncontemplating tempering their rate rising intentions.<\/p>\n<\/div>\n\n

\n

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

\n

Financial\nadvice is key, so please do not hesitate to get in contact with any questions\nor concerns you may have.<\/p>\n<\/div>\n\n

\n

The value of investments can go down as well as\nup and you may not get back the full amount you invested. The past is not a\nguide to future performance and past performance may not necessarily be\nrepeated.<\/strong><\/p>\n<\/div>\n\n

\n

All details are correct\nat time of writing (20 July 2022)<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u201cThe economy rebounded in May with growth across all main sectors\u201d Data released from the Office for National Statistics (ONS) last week shows how the UK economy returned to growth in May, recording expansion of 0.5% during the month. After shrinking in April and March, the growth experienced in May was higher than the flat […]<\/p>\n","protected":false},"author":12,"featured_media":7218,"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\/7159"}],"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=7159"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7159\/revisions"}],"predecessor-version":[{"id":7219,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7159\/revisions\/7219"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/7218"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=7159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=7159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=7159"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=7159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}