Png opposition says it may challenge 2017 budget in a Federal Court
By Andrew Burnes
LONDON, Nov 27 (Reuters) – Britain’s economy has contracted for a fifth successive quarter in April, prompting the pound to post its biggest fall since 2006 against the U.S. dollar, as businesses struggled to cope with the recession-hit global economy.
The government had expected to report its annual growth target for the second quarter of 2017 at 2 percent from 1.4 percent in April. Economists had expected it to grow at 1.7 percent from 1.9 percent in April.
Despite the fall in employment, the pound slipped 0.3 percent to $1.3115 before settling at $1.3088.
The U.S. dollar gained 0.4 percent as investors sought to hedge against risk while the euro weakened 0.2 percent, the biggest drop against the dollar si진주출장샵 진주출장마사지nce June 2008. The rupee had weakened slightly as investors worried about global risks.
“The weak economic performance in March, which continued in April, was somewhat disappointing. This should not have stopped the pound appreciating against the dollar, but it will be a big concern as the year has gone on,” said And청주출장마사지rew Taylor, an economist at RBS.
The fall in employment to its lowest level since 2003 is the biggest in eight years, and is the most worrying sign since the September 2008 global financial crisis.
Employment is falling because people are cutting their hours to avoid the financial hit from higher interest rates, in which consumers and businesses will struggle to borrow to cover their spending.
A month’s wage hike would have brought total employment in March up to 1.8 million people.
Bank of England monetary policy committee Chairman Janet Yellen will make an announcement on how the government intends to deal with interest rate rises on Tuesday.
“The실시간바카라사이트 Bank has a tight balance sheet of around £250 billion and is unable to spend much if it wants to continue to sustain its expansion. If the economy starts to slow, that has the potential to drive up the Bank’s balance sheet,” said Brian Moran, senior market analyst at Investec.
The Bank of England did not give a direct estimate for its balance sheet, though the average size has been on a slide in the past.
Economists believe interest rate rises will be much less harsh over the next few years, although that still poses risks to the pound, which has gained nearly 7 percent this year against the dollar.
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