Blackfinch Spring VCT PLC has released its weekly market update, providing a summary of global events. In the UK, the Bank of England (BoE) voted to hold interest rates at 5.25%, marking the first time in nearly 24 months that rates were not increased. UK headline inflation, as measured by the Consumer Prices Index (CPI), declined to 6.7% in August, surprising economists who had forecasted a rise to 7%. UK core CPI inflation, which excludes volatile components, fell to 6.2% in the 12 months to August. The UK borrowed £11.6bn in August, the fourth-highest level of August borrowing since 1993. S&P Global reported a decline in the UK's flash purchasing managers' index (PMI) to 46.8 in September, indicating the sharpest contraction in private sector activity since the global financial crisis. Retail sales in the UK recovered modestly in August, increasing by 0.4%. The average rent on a newly-let property in the UK has jumped by 12% in the year to August, according to estate and letting agent Hamptons.
In North America, the US flash PMI survey showed a marginal decline in the overall output index to 50.1 in September, indicating expansion but with weakened demand. The number of new house-building projects in the US declined by 11.3% in August compared to July, marking the lowest level since June 2020. Initial jobless claims in the US fell to 201,000 in the week ended September 16th, well below economist estimates.
In Europe, Eurozone CPI inflation rose by 5.2% for the year to August, down from 5.3% in July. Brent crude oil prices continued to climb towards the $100 per barrel mark, hitting $95 midweek. This spike in oil prices has created inflationary concerns for central bankers globally.
Overall, the market update provides a snapshot of economic indicators and trends in the UK, North America, Europe, and globally.