Moderating wage growth leaves the door open to further rate cuts – London Business News | Londonlovesbusiness.com

The employment rate came in at 74.8%, a small increase on the previous quarter.

Unemployment came in at 4.1%, down slightly on the previous quarter and in line with market expectations (Trading Economics).

Economic Inactivity fell quarter-on-quarter at 21.9%.

Annual wage growth (inc bonuses) came in at 4%, versus 4.6% in the three months to July and slightly below market expectations of 4.1% (Trading Economics).

Isaac Stell, Investment Manager at Wealth Club said, “Wage growth in the UK continued to slow in the 3 months to July, slightly more than had been expected in a boost to the Bank of England.

“The figures including bonuses have been distorted however by one off payments to NHS and Civil Service staff in June and July of 2023.

The UK’s Labour market continues to show little signs of weakening, however the continued moderation in wage growth means that there are no clear reasons that the Bank of England cannot continue on its interest rate cutting path.

“Initial market reactions have been muted with a brief spike in the pound having already dissipated.”