As we move closer to the end of the year the outlook for the UK remains positive following the budget announcement and positive forecasts by the Office for Budget Responsibility.
On Wednesday, 27 October 2021, Rishi Sunak jumpstarted the recovery of the economy by unleashing £75bn in a plan to relax on his planned tightening of Fiscal Policy whilst announcing a series of initiatives to help the less fortunate.
The budget included allocating billions of pounds to the infrastructure sector, education, and worker skills, boosting the budget for every government department and importantly raising the national minimum wage by 6.6% to £9.50.
The announcement saw a recovery from the September sell-off, with the FTSE 100 rising 3.07% over the last month.
The Office of National Statistics (ONS) reported the UK Gross Domestic Product (GDP) grew 5.5% between April and June, the fastest rate of any of the G20 countries in the second quarter, following a revision from 4.8%
The rating agency Fitch has predicted that the UK economy will grow at 6.6% this year which is well ahead of the forecast from the Office for Budget Responsibility.
To further boost the economy’s recovery, The UK has applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and October brought the start of formal discussions.
|UK Major indices||October’s performance|
|MSCI United Kingdom IMI||2.63%|
|UK Sectors||October’s performance|
|Real Estate industry||2.71%|
|Travel & Leisure||-6.09%|