Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Pound at highest level versus dollar since early 2022

The pound has hit its highest level against the US dollar since March 2022 after the chair of the Federal Reserve declared that “the time has come” for an interest rate cut.

Britons trending towards economic optimism, with 43% expecting their circumstances to improve

Over two fifths (43%) of UK adults believe that their financial situation will improve in the next 12 months, new research by SmartSave, a Chetwood Financial company, has found.

UK business activity hits four-month high as cost pressures ease

Activity across the UK’s private sector grew to a four-month high in August, propped up by a “robust upturn” in new business, according to indicative data. The S&P Global flash UK composite purchasing managers’ index (PMI) reported a reading of 53.4 in August, up from 52.8 in July.

Consumer optimism on UK economy declines for the first time since February

Consumer confidence in the UK economy’s outlook for the next year has declined for the first time in six months, according to new data. However, optimism about personal finances is on the rise as mortgage rates have begun to decrease following the Bank of England’s recent interest rate cut.

Labour policies will enhance economic growth, according to global fund manager survey

According to Quilter Investors’ latest Investor Trends Survey, fund groups overwhelming anticipate Labour’s policies will enhance economic growth, at a time when many have already upgraded their GDP growth forecasts.

Check out the reasons why e-commerce will never kill retail

In the UK, e-commerce revenue is expected to grow by over 12% yearly over the next few years. It already makes up over 36% of consumer spending within the nation. Looking at these numbers, it’s easy to assume that e-commerce will one day completely take over the market, killing the need for physical retail stores altogether. Although these numbers show great success for the e-commerce industry, the reality of the retail and e-commerce dynamic is more complex than one outperforming the other and rendering it obsolete.

UK GDP: UK economy decisively out of stagnation phase

Analysis by RSM concludes that the UK economy has emerged from stagnation, with GDP growth driven by services and construction sectors. Consumer spending and business investment are rising, indicating economic recovery. However, uncertainties such as Brexit and global trade tensions pose risks. The Bank of England’s interest rate decisions will influence future economic performance.

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