The past week was packed with new data releases which sent some mixed signals on the health of the UK economy and the prospects for 2026. This note takes stock. The most encouraging news came from the latest S&P Global Flash UK PMI Composite Output Index, which jumped to 53.9 in January from 51.4 in December. … Continue reading Is the UK economy “turning the corner”?
Category: Fiscal Policy
How should the UK respond to Trump’s tariff threats over Greenland?
President Trump has surely hit a new low with his threats to impose tariffs on European allies for daring to challenge his ambition to “acquire” Greenland. But the UK should not overreact and especially should not retaliate, whether with tariffs of our own or with other economic and financial sanctions. For a start, Trump’s latest … Continue reading How should the UK respond to Trump’s tariff threats over Greenland?
Why Labour’s “build, baby, build” mission is struggling to take off
Steve Reed, the newish Secretary of State for Housing, has certainly brought fresh energy to the role. This has even extended to waving MAGA-style caps with Trump-like calls to “build, baby, build!”. But while it is still early days, little has improved on the ground. The construction sector is worth watching closely for at least … Continue reading Why Labour’s “build, baby, build” mission is struggling to take off
The UK economy is trapped in a “doom loop” by a clueless government
The early omens for 2026 are not good. The UK is stumbling into the New Year on the brink of recession. Indeed, the economy stopped growing last summer as Budget jitters began to undermine confidence and spending again. Only some favourable rounding in August prevented headline GDP from falling in every month from July to … Continue reading The UK economy is trapped in a “doom loop” by a clueless government
Plain-speaking Economics 