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Econimic update - July 2009

Jeegar Kakkad July 31, 2009 16:35

Economic month in review

*GDP*	The economy contracted by 0.8% in the second quarter, compared with -2.4% in 2009q1.
*Manufacturing*	Official statistics showed the pace of decline in output continued to slow in May, when it declined by 1.2%. Annual input price inflation continued to slow, falling to 11% in June. Output price inflation also fell. Although prices remained higher than a year ago, they grew by the slowest rate in 5 years.
*Labour market*	Claimant count unemployment rose by 28,300 in June, the smallest increase in 12 months. The ILO unemployment rate jumped to 7.6%, with 2.38 million unemployed. EEF’s Pay Bulletin showed manufacturing pay growth fell to just 0.7% in the three months to June. Official statistics show average earnings growth across the whole economy slowed to 2.6% in the three months to June, compared to the same period a year ago.
*Prices*	CPI inflation fell below target to 1.8% in June, while headline inflation fell to -1.6%.
*Housing market*	House prices rose for the third month running in July, according to Nationwide. The RICS headline house price balance rose 25.8 points to -18.1 in June, marking the second-largest monthly increase since the survey began in 1978.At 48,000 mortgage approvals reached the highest since April 2008 in June.
*Consumer*	Retail sales volumes grew by 0.7% in the three months to June compared with the previous three months. Car registrations were 7.3% higher in June than in May, suggesting car scrappage schemes has helped boost sales. Consumer confidence held steady in July, as the GfK/NOP consumer confidence index remained at -25.

Tags: economic data

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