US new home sales rebound more than expected in May June 23, 2020 Sales of new single-family homes in the US increased more than expected in May, indicating that the country’s housing market could be on the cusp of recovery after being battered by the Covid-19 pandemic. New home sales jumped 16.6 per cent to a seasonally adjusted annual rate of 676,000 units last month, according to new [...]
US PMI: Downturn eases in June as coronavirus restrictions lifted June 23, 2020 US private sector activity contracted for a fifth straight month in June, but the pace of decline eased as the world’s largest economy began to lift coronavirus lockdowns, according to a flash PMI survey. IHS Markit’s flash composite PMI reading, which which tracks the manufacturing and services sectors, rose to a reading of 46.8 last [...]
Eurozone PMI: Coronavirus downturn slows as lockdowns ease June 23, 2020 The historic eurozone economic downturn slowed markedly for the second month running in June as lockdowns were further relaxed, but a V-shaped recovery may be unlikely, according to new PMI surveys. IHS Markit’s flash purchasing managers’ index (PMI) reading showed the eurozone hit a four-month high with a score of 47.5 in June. Anything below [...]
UK economy set to return to growth in third quarter after coronavirus chaos June 23, 2020 The UK economy’s coronavirus-induced downturn eased in June as key health indicators hit a four-month high, according to a closely-followed survey. The UK’s economic output hit a measure of 47.6 on IHS Markit’s flash purchasing managers’ index (PMI), a four-month high. Anything below 50 represents a contraction. But it was a stark improvement from May’s [...]
Tax system to the rescue: Six policy tweaks that could kickstart the economy June 23, 2020 The past three months have seen a deluge of economic, political, and legal moves that would have been unthinkable at the start of the year. As civil liberties were curtailed on a scale never seen in peacetime and ten million children were turned away from school, new hospitals were built in a matter of weeks, [...]
Sajid Javid: Slash taxes and ramp up spending to fuel UK recovery June 23, 2020 Britain should reduce the National Insurance tax and pour money into infrastructure and the poorest regions of the country to boost the UK’s economic recovery from the coronavirus crisis, according to former chancellor Sajid Javid. Javid, who left the Treasury as part of Boris Johnson’s February cabinet reshuffle, warned against a return to the austerity [...]
UK factory output falls at fastest pace since records began June 22, 2020 Britain’s manufacturing output has fallen at its fastest pace since records began during the three-month coronavirus lockdown. It comes as the sector remains in a deep downturn because of the pandemic, according to the latest report on UK factories by the Confederation of British Industry. The CBI’s manufacturing output gauge dropped from minus 54 per [...]
Bailey: Bank of England will reverse QE before raising rates June 22, 2020 Bank of England governor Andrew Bailey believes the Bank of England must begin reversing quantitative easing before hiking interest rates from record lows. Bailey said today that a reveral of QE should come before lifting rates from their historic lows of 0.1 per cent, signalling an upending of long-standing Bank of England policy. Bailey said [...]
Former chancellor Lord Alistair Darling backs Sunak’s VAT cut plans June 22, 2020 Former chancellor Lord Alistair Darling has backed government plans to cut VAT in a bid to boost the economy, adding that the coronavirus crisis will result in an “even more profound shock” to the UK than the 2008 financial crisis. In a foreword to a new Policy Exchange report, Darling expressed his support for current [...]
UK borrowing surges to a record £103.7bn in lockdown June 19, 2020 UK borrowing exploded to £103.7bn over April and May’s lockdown, official data showed today, as debt exceeded 100 per cent as a percentage of GDP in May for the first time in 57 years. The current financial year to date – April to May 2020 – has already seen borrowing rocket to £103.7bn. That is [...]