UK payrolls return to pre-pandemic levels, with vacancies at record – business live
Rolling coverage of the latest economic and financial news
UK payrolls back to pre-pandemic levels in August
More than one million vacancies
But end to furlough scheme looms…
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
UK company payrolls have returned to their pre-pandemic levels, and vacancies are at a record, as the long recovery from the Covid-19 crisis continues.
Vacancies grew on the quarter in June to August 2021 by 269,300 (35.2%), with all industry sectors increasing their number of vacancies and the majority reaching record levels; the largest increase was seen in accommodation and food service activities, which rose by 57,600 (75.4%).
In July there was some relief that US CPI remained steady at 5.4%, raising the possibility that we may have seen a peak. More encouragingly, core CPI slipped back from 4.5% in June to 4.3% in July, however even if central bankers seem sanguine about rising prices, US consumers definitely aren’t if the New York Fed’s latest survey of inflation expectations are anything to go by. Consumer expectations for inflation over the next three years are at a heady 4%, while for one year they are 5.2%.
The biggest worry aside from the surges we are seeing in energy prices, which is worrying enough, has been the continued rise in PPI last week to 8.3%, from 7.8%, which suggests that we may have only seen a pause in the upward trajectory in prices.