UK unemployment improves, yet wage growth drops . . . . . . . . . . . . . U.K. ILO unemployment slipped to the lowest level since the fourth quarter of 2008 as recovery strengthens. The jobless rate retreated to 6.4 percent in the quarter ended June from 6.5 percent, moving in line with analysts’ forecasts, according to the ILO calculations. The number of job seekers retreated by 132,000 to 2.08 million in the second quarter, while the number of workers edged up 167,000 to all-time high of 30.6 million. In July, jobless claims dropped by 33,600 from a revised of 39,500 drop in June, better than median forecast of 30,000 fall. As of 08:45 GMT, the pound plunged versus the U.S. dollar to trade around 1.6803 after visiting a high of 1.6826. The pound dropped as today’s report signaled that wages slipped 0.2 percent from a year earlier, where the lack of wage growth will probably prompt policymakers to hold interest rate at its current low level. Although the economy is capable of creating new jobs and inflation is below 2 percent, wage growth is showing decline. Later in the day, eyes will focus on the awaited BOE inflation report after policymakers decided last week to leave monetary policy unchanged. The BoE is expected to lower its forecasts for wage growth while cut estimate of the slack in the economy when it releases its quarterly inflation report this week. The inflation report should also provide evidence of how the economy can expand without incurring substantial price pressures. Britain’s second quarter growth of 0.8 percent will probably be confirmed this week with the release of the preliminary reading, which will include details about the main drivers of growth over the quarter. #egyptyard
Posted on: Wed, 13 Aug 2014 10:15:09 +0000
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