Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

UK govt cautious despite dip in unemployment  Join our daily free Newsletter

MENAFN - AFP - 11/09/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) Britain's unemployment rate fell unexpectedly in July to the lowest point since late 2012, official data showed Wednesday, but the government warned against over-optimism amid ongoing cuts to state spending.

Unemployment fell to 7.7 percent in the three months to July from 7.8 percent in the three months to June, the Office for National Statistics said in a statement.

That marked the lowest level since the three months to November 2012, adding to recent evidence that Britain was steadily recovering from a long-lasting recession. Market expectations had been for no change.

"Of course it's welcome when unemployment falls but we have got a long way to go," Prime Minister David Cameron said during his weekly question-and-answer session in parliament.

Cameron spoke two days after finance minister George Osborne insisted that recent economic data have vindicated his austerity measures and warned that any backtracking could jeopardise the recovery.

Cameron and Osborne's Conservative party head a coalition government which also comprises the Liberal Democrats.

Business Secretary Vince Cable, himself a member of the Lib Dems, meanwhile used a speech Wednesday to warn over the dangers of "complacency" regarding the country's economic recovery.

"We can't rest on our laurels," Cable told business leaders at a conference at Warwick University, central England.

"The kind of growth we want won't simply emerge of its own volition. In fact, I see a number of dangers. One is complacency, generated by a few quarters of good economic data."

Britain's gross domestic product (GDP) grew by 0.7 percent in the second quarter, upwardly revised data showed last month. Analysts said that the latest unemployment data have helped to confirm Britain's steady recovery.

"The latest labour market data are healthy across the board and helpful to future growth prospects," said Howard Archer, chief UK economist at the IHS Global Insight research group.

"However, underlying earnings growth remains muted."

Analysts were divided on whether the drop in unemployment would force the Bank of England (BoE) to increase record-low interest rates sooner than envisaged.

The benchmark level is being closely watched by markets after the Bank of England recently said it would consider raising its main interest rate once unemployment reached 7.0 percent.

"We expect it to fall to 7.0 percent around the third quarter of 2015," said Archer.

"Consequently, we suspect that the Bank of England could well start to raise interest rates towards the end of 2015."

But Katie Evans, economist at the Centre for Economics and Business Research, said rates would likely rise only in 2016, in line with the BoE's own expectations.

"Although today's data suggest a movement in the right direction, the labour market remains lacklustre. The number of people who worked part-time because they could not find a full-time job has more than doubled over the five years since the crisis, to 1.45 million," she added.

The Bank of England last month announced a major policy shift, as new governor Mark Carney provided clear guidance on when the BoE could be expected to raise record-low borrowing costs.

The British central bank has said it does not plan to raise its key interest rate from its current level of 0.5 percent at least until Britain's unemployment rate falls to seven percent -- providing markets with so-called forward guidance as adopted by the US Federal Reserve.

While the British central bank is forecasting that unemployment will hit a level of 7.0 percent only in 2016, as further deep cuts to state jobs offset workforce growth in the private sector, financial markets believe the BoE will have to raise interest rates sooner.

The British pound rallied following Wednesday's jobs data, a sign that traders believe rates will rise sooner than 2016.

Sterling struck 83.83 pence against the euro -- the highest level since January 23 -- and hit a seven-month peak against the greenback at 1.5287.


 


AFP




  MENA News Headlines
 Sep 28 2016 - Kuwait real estate sales drop by 26pctMENAFN
(MENAFN) Kuwait real estate sales worth KWD1.58bn in the Jan-August period this year, declined by 26 percent compared to the same period of 2015.On the other hand, the sector posted its highest ...

 Sep 28 2016 - Oman to attract USD106bn worth of investmentsMENAFN
(MENAFN) Oman aimed investment through the Ninth-Five Year Plan, which is the final step of the country's Vision 2020 economic diversification program at USD106.5b.The Public-Private Partnership is ...

 Sep 28 2016 - Investcorp to allocate USD700m to investorsMENAFN
(MENAFN) Investcorp proclaimed the projected investment distributions of more than USD700m to investors in the first quarter of 2017.Accordingly, the firm will deliver exceptional performance despite ...

 Sep 28 2016 - UAE- Andy Murray answers Emirati fan's callKhaleej Times
(MENAFN - Khaleej Times) Andy Murray has confirmed his return for the Mubadala World Tennis Championship in Abu Dhabi. The interesting part is the manner in which the Olympic and Wimbledon Champion ...

 Sep 28 2016 - UAE- Football: Time to right wrongs of past, says coach DalicKhaleej Times
(MENAFN - Khaleej Times) Al Ain coach Zatko Dalic doesn't live in the past. He is confident that his boys can edge past the Qatari side El Jaish to win the AFC Champions League semifinal first leg ...

 Sep 28 2016 - UAE- Basketball: Water fail to douse fiery cagersKhaleej Times
(MENAFN - Khaleej Times) Team Fire displayed better defensive and rebound collection abilities to wade past Team Water 68-64 in fourth Shreyas Memorial Basketball Tournament-2016 at the Shoba ...

 Sep 28 2016 - UAE- Golf: Hinton goes two clear, Scotland fights backKhaleej Times
(MENAFN - Khaleej Times) Zane Scotland displayed his remarkable ball-striking skills to haul himself back into contention with a seven-under 65 as he finished three shots off the pace going into the ...

 Sep 28 2016 - UAE- Sharjah-Ajman bridge to be closed for maintenance worksKhaleej Times
(MENAFN - Khaleej Times) "Road users are advised to use side or alternative roads during the maintenance works so as to reach their destinations as early as possible." The Sharjah Roads and ...

 Sep 28 2016 - UAE- Get online permit for waste transportation in SharjahKhaleej Times
(MENAFN - Khaleej Times) The Sharjah Municipality has introduced a smart service that will ease the process of getting permission for waste transportation. The service can be availed of by filling ...

 Sep 28 2016 - UAE- India ready to replace Pakistan as number one Test teamKhaleej Times
(MENAFN - Khaleej Times) India trail Pakistan by just one point India will reclaim the ICC Test Rankings top spot from Pakistan if they win the second Test against New Zealand starting on Friday in ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help