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Weak Income Growth In UK Despite High Employment


七月, 18 2018
watermark Economic news

Income growth in Britain showed down at its weakest rate in six months despite positive figures in record employment. This further adds concerns whether interest rates will be raised since the global financial crisis.

Average weekly earnings grew by 2.5 percent on the year between the period of March and May at a lesser rate with 2.6 percent at three months earlier which was the lowest since September last year based on the report by the Office of National Statistics.

Momentum picks up in the British economy after a sluggish first three months of the year due to heavy snow downfall and the central bank is considering being affected by the speed limit that would begin to raise the inflation rate.

The BoE Governor Mark Carney mentioned that the economy as a whole, as well as, the pay is rising similar to the forecast in May that paves the way for a rate hike in August.

Yet, a central bank deputy said that rising figure did not exceed the recent values of .5-3.0 percent range with the purpose of 3 percent growth rate by the end of the year.

Also, according to him, there have been multiple ‘false dawns’ regarding the growth rate of the income where there could still be a spare storage in the labor market than the initial estimate of the central bank.

There is also another record employment rate and the number of job openings has also reached a record new. Thus, it can be said the labor market is progressing steadfastly based on the reports, as described by the ONS statistician Matt Hughes.

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