UK pay growth beats expectations
With the unemployment rate down to just 4.0% - the lowest level since February 1975 – pay growth will probably strengthen further.
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UK pay growth in the three months to August increased to 3.1% per annum, its highest level in nearly a decade. The figure exceeded the consensus forecast of 2.9%.
With the unemployment rate down to just 4.0% - the lowest level since February 1975 – pay growth will probably strengthen further.
The news will encourage the Bank of England to continue to raise interest rates, and our house forecast is for two base rate increases of 25 bps each next year.
Given the solid figures for the UK economy of late, the current value of the pound appears to be carrying a significant Brexit discount. Consequently, much depends on events over the coming days and weeks.
If a last minute withdrawal agreement is announced, international property investors may move quickly to secure deals in a race against a recovering pound.