London Monitor | The July ‘ pingdemic ’ did not derail London economic expansion
Although the ‘ pingdemic ’ in July raised concerns about the UK economic recovery, the evidence is that activity has continued to expand, even if the biggest post lockdown gains are now behind us. Survey evidence suggests that business activity was robust in London during July. Although the pace of expansion slowed from June, according to the Purchasing Managers’ Index , London output growth remained strong by historical standards.
What you will learn:
- Among specific sectors, construction rebounded in Q2, with spending in London up 11% from Q1 and driven by new investments.
- The first signs of meaningful recovery have been seen in the
tourism sector, with hotel occupancy up 10 points to 41%.
- Demand has continued to rise in the labour market, with Labour Force Survey data showing a quarterly rise of 0.2 points in London’s resident employment rate to 74.7% in Q2.
UK: Sterling’s woes, Kwarteng’s vows, Bailey in the middle
The negative market reaction to last week's fiscal announcements appears to be a function of doubts over the credibility of the UK government's long-term fiscal plans. Though we think the structural position is not as bad as last Friday's drop in asset prices implies, it's clear the government will struggle to retain credibility if it fails to engage with market concerns.Find Out More
BoJ to look through a temporary decline in monetary base
The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields.Find Out More