Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com - The U.K. unemployment rate was unchanged at a near four-year high in June, data showed Tuesday, but pay growth remained at elevated levels suggesting a difficult decision for Bank of England policymakers next month.
According to the Office for National Statistics, the jobless rate stayed at 4.7% in the three months to June, as expected, having risen to this level in May.
This remains the highest level since July 2021.
Pay growth across the whole economy, excluding bonuses, remained at an annual 5.0% rate in the three months to June.
The Bank of England has been watching the jobs market closely amid signs that conditions are deteriorating, with the number of job vacancies falling continuously for three years.
A survey released earlier this week by the Chartered Institute of Personnel and Development indicated that British businesses are showing their weakest hiring intentions since the COVID-19 pandemic.
The survey reported that only 57% of private sector employers plan to recruit staff over the next three months. This figure represents the lowest level since the start of 2021.
The professional body for the human resources sector said higher employer social security charges introduced by finance minister Rachel Reeves and an increased minimum wage were hurting jobs, particularly in hospitality and social care.
Still, the country’s annual inflation rate hit a hotter-than-expected 3.6% in June, and more worryingly, core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, also jumped by an annual 3.7%, up from 3.5% in the twelve months to May.
Four of nine BoE policymakers opposed its quarter-point interest rate cut to 4% last week and they are likely to need convincing that domestic inflation pressures are easing when they next meet in September.