TIt has an interesting moment. The good news is that after a long period of rapid decline in real wages (inflation-adjusted earnings), wage growth is finally outpacing inflation. The bad news is that most other labor market indicators have begun to weaken, with a sharp decline in employment and vacancy rates and unemployment rates rising to their highest levels in two years.
Meanwhile, after official statisticians cheered earlier this month on an upward revision to GDP in 2020 and 2021, they brought us back to reality with news that GDP fell by 0.5% in July. Data revisions will be included in next month’s figures but are unlikely to change the picture of a stable economy.
Into the mix will be the Bank of England stepping in