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Tag: growth

Construction growth slumps to one-year low

Construction growth slumps to one-year low

Business
Construction activity slumped in August to its lowest level in a year, the latest snapshot of the sector reveals.Monthly purchasing managers' index (PMI) data from Markit/CIPS UK Construction showed a significant decline in building works, with a reading of 51.1 for last month - down from 51.9 in July.The reading - the weakest overall UK construction performance since August 2016 - was close to the 50 point mark which shows stagnation.A reading above 50 indicates growth. Economists had forecast a figure of 52.Subdued business investment and economic uncertainty dragged on demand for new projects, according to Tim Moore, associate director at IHS Markit.Firms reported a lack of new orders to replace completed ventures, with residential building the only area to buck the overall trend in Aug...
Pay growth to stay weak, says forecast

Pay growth to stay weak, says forecast

Business
Pressure on incomes looks set to continue, with pay rises forecast at 1% over the next year, a survey predicts.Despite falling unemployment, wage growth is weak because the supply of labour has also gone up, says the Chartered Institute of Personnel and Development (CIPD).The CIPD said for every low-skilled job, there were 24 applicants. There were also 19 candidates for every medium-skilled job and eight for every high-skilled vacancy.The CIPD's quarterly Labour Market Survey of employers, carried out in association with the Adecco Group, said the workforce had been boosted by more workers from other EU countries, as well as by older workers and former welfare claimants.Pay rises 'modest'The report's author, Gerwyn Davies, who is senior labour market adviser at the CIPD, said pay had been...
Sluggish growth continues for economy

Sluggish growth continues for economy

Business
The UK economy grew by 0.3% in the three months to June - up from 0.2% in the previous quarter, official figures show.Sky's Economics Editor Ed Conway said: "It is inline with what was expected, but it is pretty weak."Normally you would be hoping for growth of about 0.7% to keep the UK growing in line with its long run potential."So 0.3% will be seen as something of a disappointment for many people - and coming after relatively weak growth in the first quarter as well."By my reckoning this is the weakest first half of the year that we have seen for the economy since 2012 - so in five years."The Office for National Statistics said the slight improved performance in the three months to June was underpinned by the dominant services sector - which represents more than three quarters of output....
Consumer caution sees lending growth slow

Consumer caution sees lending growth slow

Business
Consumer borrowing growth slowed and mortgage approvals slipped further last month according to new figures from high street banks, adding to signs of a wider slowdown.The British Bankers' Association (BBA) pointed to the run-up to the election as a factor as it said consumer credit grew by 5.1% in May, down from 6.4% the previous month.It was the weakest increase since October 2015 and was partly driven by a slowdown in credit card borrowing reflecting worsening retail sales.Erik Leenders, BBA managing director for retail banking, said: "This month's figures show that in the run-up to the general election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending."Weak consumer spending has already helped UK economic growth drop to just 0.2% ...