Economic Indicators, December 2015

Inflation turns positive

The Consumer Price Index (CPI) turned positive for the first time in four months in November. CPI was 0.1% in November 2015 an increase from -0.1% in October 2015. For most of 2015, CPI has been between -0.1% and 0.1%.

Unemployment continues to fall

In August-October 2015, the unemployment rate was 5.2% – the lowest rate of Unemployment in almost 10 years. The employment rate was 73.9%, this is the highest since comparable records began in 1971.

GDP growth revised down

GDP in the UK grew by 0.4% in Q3 2015 – this is less than was previously estimated (0.5%). The estimate of GDP growth for Q2 2015 was also revised down from 0.7% to 0.5%. GDP has now been growing for 11 consecutive quarters in the UK.

Interest rates on the rise

The US Federal Reserve raised interest rates for the first time since 2006. On 16 December the target range for the federal funds rate was increased from to between 0-0.25% to 0.25-0.5%. It’s to be seen if other countries follow suit in 2016.