EEF blog

Insights into UK manufacturing

Week in Review - 18th June, 2010

Felicity Burch June 18, 2010 11:02

Consumer Price Indices The CPI inflation rate fell slightly to 3.4%. RPI annual inflation was 5.3%. The largest downwards pressures on both indices came from food and non-alcoholic drinks; and transport. Conversely, housing and household services exerted a significant upwards pressure on this month’s inflation figures.
Labour Market Statistics  The claimant count measure of unemployment – which records the number of people claiming Job Seekers’ Allowance – was down by 30,900 to 1.48 million, the fourth consecutive monthly fall, but there are still over 670,000 more claimants than at the pre-recession low in May 2008. The ILO measure of unemployment rose by 23,000 to 2.47 million in the three months to April. The three-month unemployment rate fell slightly to 7.9% from last month’s figure of 8.0%.
EEF Pay trends The three-month average settlement was 1.5% in May, up again from 1.4% in April and the highest reading since March 2009. The proportion of pay deals between 0.0% and 2.0% rose to 38.3% in the three months to May, up from 37.7%. In the three months to May, pay freezes accounted for only 30.6% of settlements, down from 33.3% in April and 46.1% in March. This marked the sixth consecutive decline in the proportion of pay freezes.
Retail sales Month on month retail sales volumes rose by 0.5% in May compared with revised figures for April showing a fall of 0.1% last month. Food sales and household goods sales were behind the rise in spending.
Public sector finances Estimates for the public sector budget deficit in May 2010 were £14.1bn, compared with £15.7bn in May 2009. Public sector net debt this month was estimated to be £903bn (or 62.2% of GDP) compared with £774bn (55.4% of GDP) last year.

The week ahead 

Wed 21st: MPC Minutes

 

Fri 23rd: GDP (Q2, prelim); Index of Services

  

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