UK businesses forecast lower wage growth over the next year to 4.9%

BoE Decision Maker Panel

Cristian Angeloni
clock • 2 min read

UK business executives have forecast an upcoming ease in wage growth pressures, according to the Bank of England’s monthly Decision Maker Panel (DMP).

Among the 2,422 responses, executives said they expect wage growth for the year ahead to decline to 4.9% on a three-month moving-average basis. Annual wage growth was 6.4% in Q1 2024, marking a 0.3 percentage point drop from the three months to February. As a result, the wage growth for the next 12 months is expected to fall by 1.5 percentage points, based on three-month averages, the DMP found. Bank of England warns of sharp correction risk of 'stretched' asset prices Similarly, employment growth is expected to follow a similar path, although the drop was forecast to be smaller...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week