Business Update – 3 August 2022
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Billions of pounds worth of benefits left on the table every year
It’s estimated that £15bn worth of benefits go unclaimed every year, with some perceiving access as a handout they shouldn’t accept. The MoneyHelper website can help you see if you are entitled to unclaimed benefits and can be accessed here.
UK manufacturing sector grows at its slowest rate since the onset of the pandemic
The latest Manufacturing Purchasing Managers’ Index report showed that the UK’s manufacturing sector grew at its slowest pace in over two years last month. The slowdown is attributed to market uncertainty, cost of living, and the war in Ukraine.
Half of UK homes worry about paying the mortgage
A recent survey found that one in eight UK households have no way to further cut spending, with half worrying about paying the mortgage over the next 12 months. The worrying statistics come as the cost of living soars.
Grain ship headed to market leaves Ukraine
A ship loaded with grain has left the port of Odesa, the first since the war began in February. It is hoped that it will be the first of many and will ease soaring grain costs around the globe.
Factory activity in China slows
Covid outbreaks in China have caused factory activity to unexpectedly shrink in July. The slowdown comes as the Chinese economy struggles to recover amid supply chain disruptions and covid outbreaks.
Cost of living crisis causes increase in credit card borrowing, decrease in cash deposits
According to new figures from the Bank of England, credit card borrowing increased last month at the fastest annual rate since 2005. The amount of money being deposited into bank accounts has also plummeted.
The housing market seems to have finally cooled, but not necessarily in the UK
With housing sales slowing and prices dropping in almost every country on earth, the UK seems to be bucking the trend so far. Economists wonder how long it can last.
Apple and Amazon do better than expected in second quarter
Despite second quarter dips in profit, both Apple and Amazon defied performance expectations overall. Supply chain disruptions and parts shortages have plagued both companies during the pandemic.
Mortgage affordability test scrapped
The Bank of England has scrapped a key mortgage affordability test that required potential homebuyers to prove they could afford a three-percentage-point rise in interest rates. While thousands of potential buyers may find it easier to enter the market, there is a risk that people will take out mortgages they can’t afford.
Brexit makes it difficult for entertainers to enter the country
Many people were looking forward to a return to live music festivals this summer, but performers are saying it’s harder than ever to get into the UK to perform post-Brexit.
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