UK RECESSION NEWS

UK economy grows in February, shows signs of exiting recession

Britain's economy saw a 0.1% monthly growth in February, with January's figures revised up to 0.3%, indicating a potential exit from recession in early 2024. Economists had anticipated a 0.1% expansion. The economy slipped into a mild recession in the latter half of 2023, posing a political challenge for Prime Minister Rishi Sunak ahead of the upcoming election.

Let’s applaud the good news for the world economy

It's too soon to turn cartwheels, but some important bellwethers of the global economy are looking better.

UK finance minister dampens down hopes of tax cuts as election looms

Jeremy Hunt talked down tax cuts, pledging prudent and responsible measures for long-term growth. Rishi Sunak's Conservative Party trails in polls with Keir Starmer predicted to win election. Bank of England has high interest rate. UK in recession. Hunt announced £800 million package for technology reforms.

How recession in the UK economy can impact Rishi Sunak

Amidst challenges faced by Prime Minister Rishi Sunak, Britain experienced an economic downturn in the latter half of 2023, coinciding with upcoming elections expected in the latter part of this year. This recession aligns Britain with Japan within the Group of Seven advanced economies, although it is projected to be brief and relatively mild compared to historical standards.

UK by-election results deliver double trouble for Rishi Sunak

The results reflect double trouble for the British Indian leader as the Conservatives had won both seats by decisive margins at the last general election under Boris Johnson in December 2019.

UK economy entered recession in second half of 2023

Britain's economy fell into a recession in the second half of 2023, with GDP contracting by a worse-than-expected 0.3% in the three months to December. The fall was the largest since the first quarter of 2021. The Bank of England expects the economy to pick up slightly in 2024, reports say

UK retail sales rise by most in nearly three years, suggesting recession will be short-lived

In January, British retail sales surged by a robust 3.4%, surpassing economists' expectations and marking the largest increase since April 2021, following a sharp 3.3% decline in December, the steepest since January 2021. Analysts suggest this signals a diminishing impact of higher interest rates on consumer spending, indicating a potential exit from recession soon.

Recession hits Japan & UK: What it means for India & all other key details

UK inflation slows sharply, boosting Bank of England and PM Rishi Sunak

Annual consumer price inflation plunged to a lower-than-expected 4.6% in October from 6.7% in September, official data showed on Wednesday. The increase in consumer prices was the smallest in two years.

British economy flatlines in third quarter of the year, in subdued update ahead of budget statement

The British economy flatlined in the third quarter of the year, official figures showed Friday ahead of a budget statement from the government later this month. The Office for National Statistics said growth in the July-to-September period was zero compared to the previous three-months.

UK inflation rate to be highest among G7 nations, predicts Paris-based OECD

The Organisation for Economic Co-operation and Development (OECD) has said in its report that the inflation rate in the UK may touch 7.2% to be the highest in the G7.

Charting the global economy: Europe inflation high, US economy recovering

Economists are optimistic about US economy next year. Meanwhile, China reduces key interest rates.

As UK housing costs soar, anxiety grips homeowners and renters: 'I'm in meltdown'

Interest rates have risen rapidly in recent months, which in turn have ratcheted up mortgages and rents across the United Kingdom. Rates have hit 5% after being below 1% for the past decade as the Bank of England has tried to bring down the highest inflation in the Group of Seven major economies.

European shares post worst week in three months, Siemens Energy slumps

European shares closed lower on Friday amid concerns of higher interest rates and inflation, prompted by central bank policy decisions throughout the week. The STOXX 600 index fell 0.3%, with the index having lost 2.9% for the week, its worst weekly performance in over three months. Siemens Energy's shares plummeted 37.3% after the company withdrew its annual profit outlook, citing quality problems at its Siemens Gamesa wind turbine unit. The basic resources index fell for the seventh straight session, posting weekly declines of 7.9%, the worst performer of the week. GSK's shares rose 4.9% after it reached a confidential settlement in a US litigation.

Bank of England admits it got wrong on recession

Bank of England staff now expect underlying UK GDP to grow by around 0.2% in both 2023 Q1 and Q2, compared to expectations in the February report of negative growth.​​​

Bank of England raises interest rates to 4.5% as inflation is slow to fall

The Bank of England has raised its interest rate by a quarter of a percentage point to 4.5%, the highest level since 2008, in its 12th consecutive rate rise. Although it no longer predicts recession after reviving its growth forecasts, it also expects inflation to be slower than anticipated to fall due to unexpectedly large and persistent increases in food prices.

BoE raises key interest rate by 50 bps to 4%, highest since October 2008

Seven of the UK central bank’s nine-member Monetary Policy Committee endorsed the hike to 4%, while two voted for no change. The majority said strong pay growth and an ongoing shortage of workers were feeding price pressures in the economy.

'Act of self-harm': Minister Robert Jenrick comments on further strikes in UK

A government minister, Robert Jenrick, tells a news agency that further strikes would be "an act of self-harm" for the economy. He states that meeting trade unions' demands would entrench inflation and be very detrimental to the economy.

Budget 2023: Largely unnoticed, this $250-billion sector wants more attention from the FM

The budget can set up an environment to safeguard exporters from the global economic gloom while also helping them take advantage of the geopolitical crisis to expand their markets, say experts.

Infosys to announce Q3 earnings on Jan 12; all eyes on deal pipeline

The earnings come at a time when the industry is seeing massive layoffs that have surpassed the levels from the Great Recession the world went through 2008-2009

UK increases windfall tax on profits of oil, gas companies

Saying the U.K. faces "unprecedented global headwinds," Treasury chief Jeremy Hunt is unveiling tax increases and spending cuts in a speech to the House of Commons in a bid to tame double-digit inflation and rein in a growing deficit.

Mutual fund cash holdings rise amid rising uncertainties, rich valuations

​​Mutual funds distributors also cite inflows in existing and new fund offers (NFOs) as another reason for higher cash holding by funds.

Goldman Sachs sees deeper UK recession after tax U-turn

Goldman revised its 2023 UK economic output forecast to a 1% contraction from an earlier forecast for a 0.4% output drop, with core inflation seen at 3.1% at the end of 2023, down from 3.3% previously, Bloomberg said. On Friday, Truss said Britain will go ahead with corporation tax rise to 25% next year, making an U-turn on a pledge to freeze it at 19%.