Economic update: Household financial resilience is slowly improving
Household financial resilience has been improving but the labour market continues to weaken. Inflation increased in December but is expected to fall in 2026.
Household financial resilience has been improving but the labour market continues to weaken. Inflation increased in December but is expected to fall in 2026.
The Bank of England cut interest rates in December 2025, for the fourth time this year. However, the labour market weakened and GDP unexpectedly fell.
Economic growth remains slow, productivity forecasts are likely to be downgraded and government borrowing is at almost the highest on record.
Economic Updates,Research Briefing
UK inflation remains above the Bank of England’s target rate of 2%. The Bank says that increases in food prices and administered prices are largely to blame.
Economic Updates,Research Briefing
The Bank of England cut its benchmark interest rate to 4% in August 2025. However, there are signs that UK inflation might be persisting.
Economic Updates,Research Briefing
UK inflation remains higher than expected, economic growth remains slow and public finances are assessed as “relatively vulnerable” in the long term.
Economic Updates,Research Briefing
Despite the weakening of the labour market and forecasted slower economic growth, some measures show business and consumer confidence increasing.
Economic Updates,Research Briefing
UK economic growth was higher than expected in the first quarter of 2025, but concerns about potential tariffs, inflation and interest rates persist.
Economic Updates,Research Briefing
International organisations have lowered their growth forecasts since the US imposed tariffs on goods imports in April.
Economic Updates,Research Briefing
Businesses report various challenges, most commonly economic uncertainty. Larger businesses are more positive about the future.
Economic Updates,Research Briefing
Sluggish GDP growth is expected to continue into early 2025, amongst weak business confidence. The government has made growth its “number one mission”.
Economic Updates,Research Briefing
UK economic growth has slowed in the second half of 2024, after a relatively strong start. Early indicators suggest Q4 growth may be close to or lower than Q3.
Economic Updates,Research Briefing
With inflation close to its 2% target, the Bank of England cut its interest rate to 4.75% in November, but it now expects higher inflation and growth than it did before the Budget.
Economic Updates,Research Briefing
Growth in the UK economy has slowed somewhat as businesses await the Labour’s October Budget.
Economic Updates,Research Briefing
The UK exported £153 billion more than it imported in services in 2023, but it imported £204 billion more than it exported in goods.
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