Our monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future.
Overview
VACCINATIONS PROVIDE ECONOMIC HOPE
Although recently released data has revealed a decline in UK economic activity, Bank of England (BoE) Governor Andrew Bailey, has expressed hopes that the vaccine roll-out programme will begin to spark a “pronounced recovery.”
RETAILERS SUFFER ANNUS HORRIBILIS
A small rise in sales volumes during December marked a weak end to what has been the worst year on record for the UK retail sector.
MARKETS
At the end of January, major global markets closed in mixed territory. Vaccine supply issues and short-term economic concerns continue to weigh on sentiment. In the last week of the month, President Biden said the US was working to secure more doses in response to complaints of shortages, while the UK and EU were locked in a spat over the supply of the AstraZeneca/Oxford vaccine.
BORROWING REMAINS AT RECORD LEVELS
The latest public sector finance statistics show the government continues to borrow record amounts in order to support the economy through the pandemic.
UNEMPLOYMENT CONTINUES TO RISE
The rate of unemployment in the UK has risen to a near five-year high, following another increase in redundancies, particularly amongst young people.