Good morning.
Household incomes in the UK fell for an unprecedented fourth quarter as the cost of living crisis continues to erode budgets.
The 0.2% drop in disposable income in the first three months of this year is the longest period of decline since the beginning of records in 1955.
This also leaves incomes 1.3% lower than a year ago – even before the jump in energy and tax bills began in April.
The figures underscore the continuing pressure on household finances amid rising inflation fueled by the Russian war in Ukraine, with prices rising for everything from food and fuel to clothing.
ONS confirmed GDP growth of 0.8% in the first quarter. However, the economy is expected to shrink in the second quarter as consumers begin to cut costs.
5 things to start your day with
1) Oligarchs “must be persecuted” for dirty money in London MEPs warn that government inaction marks UK as “safe haven for corrupt wealth”
2) Britain is suffering from a faster and steeper decline than Europe, warns Andrew Bailey. The Governor of the Bank of England says the country is suffering from a “very big shock in real national income”
3) Roasted Heinz beans removed from Tesco’s shelves due to “unjustified” price increase Supermarket directs buyers to competing products
4) Criminals using “deepfakes” to apply for a job at home. The FBI warns that fraudsters are “faking a voice” in attempts to steal corporate information
5) Britain risks a trade war as steel tariffs are extended Steel tariffs are extended by two years in a possible breach of trade rules
What happened during the night
Shares of Tokyo fell this morning after US stocks ended unchanged, with investors looking for new signals to trade.
The Nikkei 225 benchmark fell 0.2 percent in the open, while the broader Topix index lost 0.3 percent.
The Dow Jones Industrial Average was down 0.3 percent, while the broad S&P 500 was down 0.1 percent. The technology-rich Nasdaq index fell less than 0.1 percent.
Global markets had become heavier after US Federal Reserve Chairman Jerome Powell spoke at an ECB forum.
Expect today
- Corporate: Bunzl (trade statement)
- Economy: GDP (UK), National Housing Price Index (UK), Unemployment Rate (EU), Unemployment Claims (US), Personal Income (US), PMI in Chicago (US)
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