Good morning.
UK household incomes fell for an unprecedented fourth quarter as the cost-of-living crisis continues to hit budgets.
The 0.2% drop in disposable income in the first three months of this year is the longest drop since records began in 1955.
It also leaves revenue 1.3% lower than a year ago, even before the rise in energy bills and taxes in April.
The figures show continued pressure on household finances amid rising inflation driven by the Russian war in Ukraine, with rising prices for everything from food and fuel to clothing.
The ONS confirmed GDP growth of 0.8% in the first quarter. However, the economy is expected to shrink in the second quarter as consumers begin to cut spending.
5 things to start the day
1) Oligarchs ‘must be prosecuted’ for gross money in London MEPs warn government inaction describes UK as ‘safe haven for corrupt wealth’
2) Britain suffers a faster and stronger fall than Europe, warns Andrew Bailey The governor of the Bank of England says the country is suffering “a very large national real income shock”
3) Heinz baked beans are removed from Tesco’s shelves in a row due to “unjustifiable” price increase The supermarket targets buyers to rival products
4) Criminals who use “deepfakes” to apply for work at home The FBI warns that scammers are “falsifying the voice” in attempts to steal corporate information
5) Britain runs the risk of a trade war as steel tariffs expand Steel tariffs extend two years in probable breach of trade rules
What happened overnight
Shares in Tokyo opened lower this morning after US stocks ended flat, with investors looking for new trading tracks.
The Nikkei 225 benchmark index fell 0.2% at the opening, while the broader Topix index lost 0.3%.
The Dow Jones Industrial Average fell 0.3%, while the S&P 500 fell 0.1%. The technology-rich Nasdaq index fell less than 0.1%.
Global markets were affected after US Federal Reserve Chairman Jerome Powell spoke at a panel at the ECB Forum.
Arrive today
- Company: Bunzl (commercial statement)
- Economy: GDP (UK), National House Price Index (UK), Unemployment Rate (EU), Unemployment Claims (US), Personal Income (US), Chicago PMI (US) )