British wage growth, excluding bonuses, fell to the lowest level in more than two years in the third quarter, new data from the Office for National Statistics shows.
The ONS also said unemployment rose to 4.3 percent in September, up from 4.1 percent in the previous month, in further signs of a cooling labor market.
The FTSE 100 is down 0.4 percent in early trading. Companies with reports and trading updates today include Metro Bank, AstraZeneca, BAE Systems, Vodafone and Drax. Read the Business Live blog from Tuesday, November 12 below.
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‘For now, there is nothing to deter the Bank from its plan of gradual interest rate cuts’
Luke Bartholomew, deputy chief economist at Abrdn, comments on the latest ONS unemployment figures:
“Despite the marked increase in unemployment, it is likely the continued slowdown in wage growth that will be of most interest to policymakers.
Unemployment data has been plagued by methodological problems for some time and thus plays a much smaller role than normal in policy decisions.
Meanwhile, the continued slowdown in wage growth will give the Bank of England confidence that inflationary pressures are broadly as expected.
Of course, the fiscal stimulus announced in the Budget and the likelihood of a material policy change in the US mean that all the data may feel a bit dated as we wait to see the impact of these shifts.
But for now there is nothing to deviate the Bank from its plan of gradual rate cuts, with the next cut of 25 basis points likely to take place early next year.”
Unemployment in Britain rises to 4.3% and earnings fall to 4.8%
Wage growth has fallen to the lowest level in more than two years, while UK unemployment has risen more than expected, according to official figures.
Average regular profit growth fell to 4.8 percent in the three months to September, compared with 4.9 percent in the previous three months, according to the Office for National Statistics.
Bitcoin and Tesla Rise Amid ‘Trump Transactions’ Frenzy
Bitcoin could be worth $100,000 in January as crypto investors pile in thanks to Donald Trump’s resounding election victory.
The digital currency hit an all-time high yesterday, rising above $89,000 for the first time as a wave of ‘Trump trades’ erupted across global markets.
Metro Bank has been fined £16.7 million for failing to monitor financial crimes
Metro Bank has been fined almost £16.7 million after a City Watchdog investigation revealed historic failings in the lender’s money laundering controls.
Between June 2016 and December 2020, Metro “did not have the appropriate systems and controls in place” to adequately monitor more than 60 million transactions worth more than £51 billion, the Financial Conduct Authority said.
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