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CBI forecast growth at the start of 2010
The Confederation of British Industry (CBI) has revised its growth forecasts for the UK economy in light of the encouraging economic data that has emerged over recent weeks.
According to the CBI, the UK economy will continue to contract during 2009, but will start to grow in the first two quarters of 2010. The CBI has forecasted that the UK economy will have shrunk by 4.8% by the end of the recession. The CBI has also downgraded its predictions on unemployment, predicting unemployment to peak at 3.03million, down from 3.25million which it forecast in April. Although these are just predictions, they give some hope that the recession is not going to be quite as bad as was once thought.
Here is a review of the other top money stories of the past week commencing 15th June 2009.
Monday 15th June
Phisher scams on the increase – The number of fraudsters attempting to 'phish' consumers' bank account details through sending random emails to millions of people has seen a dramatic increase over the past few months. Apacs reported that they have detected 14,369 different phishing emails during the first three months of 2009, up from 10,235 during the same period last year. In these phishing emails, fraudsters will pretend to be a bank asking you to confirm details such as account numbers, pin numbers and dates of birth. It is important that you stay alert to these potential scams. Always look out for the secure padlock on the web page or contact the establishment through official and public listed contact details.
According to the CBI, the UK economy will continue to contract during 2009, but will start to grow in the first two quarters of 2010. The CBI has forecasted that the UK economy will have shrunk by 4.8% by the end of the recession. The CBI has also downgraded its predictions on unemployment, predicting unemployment to peak at 3.03million, down from 3.25million which it forecast in April. Although these are just predictions, they give some hope that the recession is not going to be quite as bad as was once thought.
Here is a review of the other top money stories of the past week commencing 15th June 2009.
Monday 15th June
Phisher scams on the increase – The number of fraudsters attempting to 'phish' consumers' bank account details through sending random emails to millions of people has seen a dramatic increase over the past few months. Apacs reported that they have detected 14,369 different phishing emails during the first three months of 2009, up from 10,235 during the same period last year. In these phishing emails, fraudsters will pretend to be a bank asking you to confirm details such as account numbers, pin numbers and dates of birth. It is important that you stay alert to these potential scams. Always look out for the secure padlock on the web page or contact the establishment through official and public listed contact details.
Tuesday 16th June
UK inflation continues to fall – The latest figures released by the Office for National Statistics (ONS) have indicated that inflation continued to fall during May. The Consumer Price Index (CPI), one of the measures used for inflation fell from 2.3% in April to 2.2% in May. This CPI figure still remains above the Bank of England's target rate of inflation of 2%. The Retail Price Index (RPI), another measure of inflation which includes mortgage interest payments and housing costs however moved from -1.2% in April, to -1.1% during May. This slight increase in RPI has been attributed to the moderate increases seen in average mortgage interest payments during May. These latest figures show that prices are not falling as quickly but still suggest that we can expect to see further price falls over the coming months.
UK inflation continues to fall – The latest figures released by the Office for National Statistics (ONS) have indicated that inflation continued to fall during May. The Consumer Price Index (CPI), one of the measures used for inflation fell from 2.3% in April to 2.2% in May. This CPI figure still remains above the Bank of England's target rate of inflation of 2%. The Retail Price Index (RPI), another measure of inflation which includes mortgage interest payments and housing costs however moved from -1.2% in April, to -1.1% during May. This slight increase in RPI has been attributed to the moderate increases seen in average mortgage interest payments during May. These latest figures show that prices are not falling as quickly but still suggest that we can expect to see further price falls over the coming months.
Wednesday 17thJune
Unemployment reaches highest level since 1996 – - Official figures released by the Office for National Statistics (ONS) have indicated that unemployment has increased to 2.261million during the three months to the end of April. This figure marks the highest unemployment level in the UK since 1996. The jobless rate now stands at 7.2%, the highest rate seen since 1997. The number of people claiming Jobseeker's Allowance increased in May by 39,000 claimants, with the claimant rate now at 4.8%. These figures are slightly better than forecast, but unemployment continues to increase which will put more and more pressure on families who are already struggling to stay in control of their finances. For more information on redundancy see this helpful guide from Credit Action.
Increase in young females going bust – Research conducted by The Insolvency Service has indicated that the number of women below the age of 24 being declared bankrupt has increased over the past year. Last year 1,560 women under 24 were declared bankrupt, representing 55% of the total young bankruptcies last year. This compares to 44% of young bankruptcies being young women 5 years ago. The Insolvency Service has suggested that young females are more likely to spend irresponsibly, whilst men are more willing to save on things such as rent by living at home. The total number of personal bankruptcies during 2008 reached 67,500, up 89% from 5 years previously.
Unemployment reaches highest level since 1996 – - Official figures released by the Office for National Statistics (ONS) have indicated that unemployment has increased to 2.261million during the three months to the end of April. This figure marks the highest unemployment level in the UK since 1996. The jobless rate now stands at 7.2%, the highest rate seen since 1997. The number of people claiming Jobseeker's Allowance increased in May by 39,000 claimants, with the claimant rate now at 4.8%. These figures are slightly better than forecast, but unemployment continues to increase which will put more and more pressure on families who are already struggling to stay in control of their finances. For more information on redundancy see this helpful guide from Credit Action.
Increase in young females going bust – Research conducted by The Insolvency Service has indicated that the number of women below the age of 24 being declared bankrupt has increased over the past year. Last year 1,560 women under 24 were declared bankrupt, representing 55% of the total young bankruptcies last year. This compares to 44% of young bankruptcies being young women 5 years ago. The Insolvency Service has suggested that young females are more likely to spend irresponsibly, whilst men are more willing to save on things such as rent by living at home. The total number of personal bankruptcies during 2008 reached 67,500, up 89% from 5 years previously.
Thursday 18th June
Youth unemployment reaches a 15-year high – According to the unemployment figures released yesterday by the Office for National Statistics, one in six 18 to 24 year olds is jobless. The total number of unemployed aged between 18 and 24 increased by 74,000 in the three months to April to reach 695,000. The Prince's Trust has estimated that youth unemployment is currently costing taxpayers £23m a week in unemployment benefits. In the Budget in April, the government announced the Young Person's Guarantee which will offer unemployed individuals between 18 and 24 either a job or training. They have also pledged to create 100,000 jobs through the Future Jobs Fund. With youth unemployment increasingly rapidly, only time will tell as to whether these measures will be enough.
Youth unemployment reaches a 15-year high – According to the unemployment figures released yesterday by the Office for National Statistics, one in six 18 to 24 year olds is jobless. The total number of unemployed aged between 18 and 24 increased by 74,000 in the three months to April to reach 695,000. The Prince's Trust has estimated that youth unemployment is currently costing taxpayers £23m a week in unemployment benefits. In the Budget in April, the government announced the Young Person's Guarantee which will offer unemployed individuals between 18 and 24 either a job or training. They have also pledged to create 100,000 jobs through the Future Jobs Fund. With youth unemployment increasingly rapidly, only time will tell as to whether these measures will be enough.
Friday 19th June
Homebuyers struggle to get onto the property ladder – The Bank of England has revealed that more than 16,000 mortgage applications are turned down every month. This marks an increase from the 12,000 mortgage applications turned down in December 2008. These latest figures come after the Council of Mortgage Lending (CML) released figures that indicated that mortgage lending fell by 2% during April to £10.3bn. The fall in lending was largely attributed to the fall in remortgaging due to stricter lending criteria and favourable variable rates. It is feared that reduced lending both to individuals and businesses may affect the UK's economic recovery.
Homebuyers struggle to get onto the property ladder – The Bank of England has revealed that more than 16,000 mortgage applications are turned down every month. This marks an increase from the 12,000 mortgage applications turned down in December 2008. These latest figures come after the Council of Mortgage Lending (CML) released figures that indicated that mortgage lending fell by 2% during April to £10.3bn. The fall in lending was largely attributed to the fall in remortgaging due to stricter lending criteria and favourable variable rates. It is feared that reduced lending both to individuals and businesses may affect the UK's economic recovery.
