TUC Economic Quarterly Report - October 2014

This quarterly TUC report provides an analysis of UK economic and labour market developments over recent months, and includes  a spotlight feature on pay and earnings.  

Summary

• In common with many other countries, there has been a significant revival in UK economic activity from the second half of 2012.
• Revisions to the National Accounts now show this revival a little stronger than previously thought.
• Domestic demand appears to be the key factor in expansion.
• Trade is weak, and there are growing fears of global slowdown.
• Household and corporate savings have been reduced over the past years, and deleveraging may have stalled.
• Public sector deficit reduction has slowed, as tax revenues falter.
• The labour market is expanding rapidly, with the unemployment rate of 6.2 per cent at a six year low, though underemployment continues to play a significant role.
• Furthermore, earnings growth continues to weaken with official figures at historic lows.