The Bank of England's inflation problem is not going to fade as fast as it hopes according to new data that reveals the UK labour market remains strong and consistent with churning out inflation levels above the Bank's own forecasts.
A major revision to the UK's GDP statistics reveals the country is no longer a laggard when compared to its major rivals with the economy now firmly above pre-pandemic levels.
Business confidence rallied to an eighteen-month high in August, led by a rebound in economic optimism, according to the Lloyds Business Barometer.
Pound Sterling eased from recent highs against the Euro, Dollar and other currencies in the final session of the week after retail sales were reported to have fallen further than expected in July with declines seen across most product categories but partially attributed to rainy and overcast weather during the period.
Pound Sterling edged higher against many counterparts after Office for National Statistics (ONS) data indicated continued record growth in wage packets during June but also confirmed what appear to be cracks emerging in the overall labour market.
Official measures of supply and demand suggest an economy growing faster than many expected including the Bank of England (BoE), leading to forecast upgrades in some parts this week and increased uncertainty about the outlook for interest rates.
A business investment boom might be underway in the UK as businesses utilise their considerable cash balances amidst an improved political landscape and despite rising interest rates.
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