Source: IRS Employment Review Issue: 882 Date: 19/10/2007 Publisher: IRS

Summer takes heat out of the economy

TOPICS:
recruitment labour market and economy
pay and benefits pay levels and awards

SECTORS:
electricity, gas and water
finance
manufacturing (other)
public services
services (other)
transport and communication

The impact of recent events in the world's financial markets will take the heat out of the UK economy, our panel of leading analysts say.

On this page:
Inflation: CPI falls back but headline measure is on the rise
Outlook for inflation
Growth: expansion to continue, albeit more slowly
Outlook for growth
Labour market: mixed signals
Outlook for labour market
Table: Forecast of annual rate of change in retail prices and earnings, 2007/08

Key points

  • The consensus view of our panellists is that RPI inflation has probably peaked and will decline over the course of 2008, falling to 2.6% by the end of 2008.
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