Quotes: US 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 30 2014 - No Haj without permit: Checkpoints net 98000Arab News
(MENAFN - Arab News) Security forces have barred 98000 people from entering Makkah because they did not have Haj permits the Interior Ministry said in a statement on Monday. The authorities did not ...

 Sep 30 2014 - Turkey tanks face IS at Syria borderArab News
(MENAFN - Arab News) MURSITPINAR Turkey: Turkey on Monday deployed tanks and armored vehicles to reinforce its border with Syria amid escalating Islamic State violence as Parliament is set to ...

 Sep 30 2014 - Price control to end pilgrim abuseArab News
(MENAFN - Arab News) The Ministry of Haj plans to fix the prices of Haj services offered by companies in an attempt to prevent the exploitation of pilgrims by unscrupulous operators.Hussein Al-Sharif ...

 Sep 30 2014 - KSA to host 1.4m Hajis from abroadArab News
(MENAFN - Arab News) More than 1.4 million foreign pilgrims are expected to perform Haj this year said Haj Minister Bandar Hajjar. 'About 1.36 million pilgrims already arrived from different ...

 Sep 30 2014 - Misconceptions about IslamArab News
(MENAFN - Arab News) This is with reference to the report 'Be modern but don't shun Islamic values: King' (Sept. 29). Everybody should read Custodian of the Two Holy Mosques King Abdullah's speech ...

 Sep 30 2014 - Toppling Assad regimeArab News
(MENAFN - Arab News) Beyond a shadow of doubt the atrocities committed by the regime of Bashar Assad paved the way for the militants belonging to the so-called Islamic State to take roots in Syria. ...

 Sep 30 2014 - South Korea's Overseas Construction Orders Grow 5.2%Qatar News Agency
(MENAFN - QNA) Overseas construction projects won by South Korean builders so far this year have risen 5.2% from a year earlier with the annual total expected to top US$70 billion, the government ...

 Sep 30 2014 - Real Estate Transactions Worth over QR831 Million Last WeekQatar News Agency
(MENAFN - QNA) Real estate transactions between September 21 and 25 for the real estate sales contracts registered at the Ministry of justice are worth QR831,613,172, the real estate registration ...

 Sep 30 2014 - HITC Honours Media for Success of Kulluna CampaignQatar News Agency
(MENAFN - QNA) The Hamad International Training Centre (HITC) honoured over 50 representatives from media, healthcare and corporate executives for their contribution towards the success of its ...

 Sep 30 2014 - Power of social mediaArab News
(MENAFN - Arab News) This is with reference to the article 'Shift in US public discourse on ME' (Sept. 29) by Jamal Doumani. It is very true that with the advent of social media things have started ...

more...


 






Google

Click to Apply

 
 

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help