This Feels Like a Financial Boom But Is It Really?
- Both economies are running at near to full capacity. UK unemployment is at 4.7%, which is equal to its lowest since 1975. The US unemployment rate is also hovering at 4.7%, which is approximately half a percentage point above the peaks experienced prior to the financial crash in 2008 or the level of the boom of the late 1990’s.
The true debate among economists is to decipher how much spare capacity there really is, both in the UK and the US. Pressure gauges of demand are starting to appear, as we are witnessing price increases in both economies, with US consumer prices up 2.7% in March 2017 vs. March 2016 (the highest rate for five years), and UK consumer prices are nudging slightly above 2.0% comparatively.
- Both economies are running at near to full capacity. UK unemployment is at 4.7%, which is equal to its lowest since 1975. The US unemployment rate is also hovering at 4.7%, which is approximately half a percentage point above the peaks experienced prior to the financial crash in 2008 or the level of the boom of the late 1990’s.
The true debate among economists is to decipher how much spare capacity there really is, both in the UK and the US. Pressure gauges of demand are starting to appear, as we are witnessing price increases in both economies, with US consumer prices up 2.7% in March 2017 vs. March 2016 (the highest rate for five years), and UK consumer prices are nudging slightly above 2.0% comparatively.
