Economic data from the UK this morning could hold the key as to whether the Bank of England decides to cut interest rates next week or not. This morning we get snapshot surveys of sentiment across the manufacturing and services sectors in January.
Clearly, that should take account of any post-election bounce in confidence or activity. If no bounce is in evidence, researchers at Capital Economics reckon that the UK’s central bank is likely to cut rates when it next meets.
That said, December’s survey figures did show some evidence that activity was already picking up. So it could be a close-run thing.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
We’ll get similar snapshots over in the US. Those may be pored over for any impact that the recent ‘phase one’ trade deal with China has had on sentiment.
In the eurozone, it’s a similar story. Investors will be watching to see if signs of sentiment perking up in December have followed through into this month.
-
Higher rates are disappearing – should you fix your savings?Fixed savings rates have dropped to their lowest levels in over a year. Should you fix your savings now ahead of a potential base rate cut in November?
-
Nine million people fall victim to financial scams, says Citizens AdviceThe charity says that around one in five people across the UK have been caught out by a finance scam in the past year - here is how to protect your money
-
UK wages grow at a record paceThe latest UK wages data will add pressure on the BoE to push interest rates even higher.
-
Trapped in a time of zombie governmentIt’s not just companies that are eking out an existence, says Max King. The state is in the twilight zone too.
-
America is in deep denial over debtThe downgrade in America’s credit rating was much criticised by the US government, says Alex Rankine. But was it a long time coming?
-
UK economy avoids stagnation with surprise growthGross domestic product increased by 0.2% in the second quarter and by 0.5% in June
-
Bank of England raises interest rates to 5.25%The Bank has hiked rates from 5% to 5.25%, marking the 14th increase in a row. We explain what it means for savers and homeowners - and whether more rate rises are on the horizon
-
UK wage growth hits a record highStubborn inflation fuels wage growth, hitting a 20-year record high. But unemployment jumps
-
UK inflation remains at 8.7% ‒ what it means for your moneyInflation was unmoved at 8.7% in the 12 months to May. What does this ‘sticky’ rate of inflation mean for your money?
-
VICE bankruptcy: how did it happen?Was the VICE bankruptcy inevitable? We look into how the once multibillion-dollar came crashing down.
