TUC slump warning
Tuesday 09 June 1998
The TUC insists that, contrary to statements from the Bank and the Treasury, recent pay deals have been "responsible and moderate". Average earnings growth also had to be set against the cost of living, now rising at 4 per cent. The general secretary, John Monks, said wage responsibility must lie with company directors.
In its report, the TUC also argues that as manufacturing was moving into recession, the service sector of the economy was slowing down.
Yesterday's figures made plain once again the absence of any kind ofinflationary pressure in manufacturing. "Core" prices charged by manufacturers, excluding the erratic food, drink and petroleum components, were the same last month as a year earlier.
It was the first time in 31 years that underlying inflation at the factory gate has fallen to zero. This is due to the falling cost of materials, which has allowed manufacturers to offset their higher wage bills. Prices rose 0.3 per cent in May but remained 8.9 per cent lower than a year earlier.
If sales growth on the high street slows down, the good news on inflation could yet feed through to retail prices. In its May survey, the British Retail Consortium reported stable sales growth. The value of sales rose 6.4 per cent in the year to May, down from 8.8 per cent in April.
Like-for-like" sales growth dipped from 5.7 per cent to 3.7 per cent.
However, yesterday's figures will be of little interest to the Bank's Monetary Policy Committee compared to the next official statistics on average earnings and the jobs market, due next week. These will reveal how far the surge in measured wage growth was due to one-off bonuses, as the TUC alleges in today's report.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 3 UK weather: Britain braced for snow as arctic air mass moves in
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
HSBC review into moving headquarters from UK 'underway'
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...