SJP's Hetal Mehta: 'Cracks' in UK labour market increase recession risk

Pressure on recessionary outlook

clock • 1 min read

The UK economy is still on a path to recovery but head of economic research at St James's Place Hetal Mehta said said "cracks" in the unemployment data have increased the risk of a recession.

Unemployment data edges up and wage growth persists despite a recent cooldown with the  Office for National Statistics revealing that the UK unemployment rate rose to 4.3% in the first quarter, up from 3.8% during the last three months of 2023. Mehta similarly argued the US economy is "not out of the woods" yet, after the Federal Reserve decided this keep interest rates steady this month as inflation persisted. In April, US inflation dropped to 3.4%, down from 3.5% the previous month, prompting bets on interest rate cuts later this year. US inflation drops to 3.4% in April Mehta...

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
member?

Login

More on Economics

Fund managers most bullish since 2021 as inflation fears recede

Fund managers most bullish since 2021 as inflation fears recede

Growing confidence in US economy

clock 19 June 2024 • 1 min read
UK inflation returns to 2% target but June BoE cut remains unlikely

UK inflation returns to 2% target but June BoE cut remains unlikely

First time since 2021

Cristian Angeloni
clock 19 June 2024 • 2 min read
UK investment levels remain lowest in G7 for third year in a row

UK investment levels remain lowest in G7 for third year in a row

£1.9trn underinvestment in last 32 years

clock 18 June 2024 • 2 min read
Trustpilot