17 Oct 2013
Flash: Good news for the UK - BBH
FXstreet.com (London) - The UK, as research teams at BBH pointed out, has seen the largest decline in the unemployment claimant count since mid-1997.
Key Quotes:
“The 41.7k decline, coupled with the revision to the August series, puts the claimant count decline at twice the 25k that the consensus expected”.
“The ILO measure of unemployment, which the BOE's forward guidance refers to, remained at 7.7%. Yet the real disappointment with the report was that average weekly earnings (3-month year-over-year) slipped to 0.7% in August (an extra month lag) from a revised 1.2% in July”.
“The weak earnings growth and firm price pressures erodes the real purchasing power of British households and over time, this is likely to weigh on consumption and, through that, weaken the economy”.
Key Quotes:
“The 41.7k decline, coupled with the revision to the August series, puts the claimant count decline at twice the 25k that the consensus expected”.
“The ILO measure of unemployment, which the BOE's forward guidance refers to, remained at 7.7%. Yet the real disappointment with the report was that average weekly earnings (3-month year-over-year) slipped to 0.7% in August (an extra month lag) from a revised 1.2% in July”.
“The weak earnings growth and firm price pressures erodes the real purchasing power of British households and over time, this is likely to weigh on consumption and, through that, weaken the economy”.