Panthera Consultancy Weekly Newsletter
Welcome to Your Panthera Consultancy Weekly Newsletter!
Of course, the big news this week is the UK election taking place on Thursday, July 4th. The outcome of this election is set to significantly impact the UK economy and our businesses, so make sure to cast your vote this Thursday. In other news, are UK houses overpriced? Zoopla thinks so. Will a new government be able to invest in the UK while managing high levels of national debt? And there’s good news for those renewing their mortgages, as three major banks have confirmed reductions in their mortgage offerings this week. Everything you need to know is in this week’s edition of your Panthera Consultancy Weekly Newsletter.
And of course, as always, if you’re looking to grow your business, obtaining business finance can be key to your next level of success! All highly successful entrepreneurs have learned to use debt as a tool and, of course, learned to use it wisely. So don’t be dismayed if interest rates are higher than they were three years ago. If your business can obtain the right returns, the debt will enable the long-term goals of your business to happen faster! Don’t just wing it—get in touch with the experts at Panthera Consultancy and let us help you navigate the world of business lending to take your business to the next level.
Email: info@pantheraconsultancy.com
Phone: 0208 132 6872
Now onto the updates:
ECONOMY
Average UK Wage Rises by Just £16 Since 2010
A report from the Resolution Foundation reveals that average weekly wages in Britain have only increased by £16 in real terms since 2010. Sluggish GDP and productivity growth since the 2008 financial crisis have limited improvements in living standards.
Consumers Increasingly Optimistic About the Economy
Consumer confidence has risen for the third consecutive month, according to a GfK survey. The Consumer Confidence Index increased by three points in June, driven by growing optimism about the economy and expectations for future economic improvement.
UK Economy Primed for Success – Vanguard
Joe Davis, global chief economist at Vanguard, suggests that the UK economy is well-positioned for rapid growth next year, regardless of the election outcome. This optimism is driven by increased consumer spending and potential interest rate cuts from the Bank of England. Davis also predicts that AI will be as transformative for the economy as electricity.
UK Private Sector Growth Slows
The UK private sector experienced a slowdown in growth as businesses and households delayed spending until after the general election. The composite PMI fell to 51.7 in June, indicating a sluggish quarterly GDP growth rate of just over 0.1%.
Public Debt Limits Government’s Ability to Invest, Warns Nunn
Charlie Nunn, CEO of Lloyds Banking Group, warns that the next government will be constrained in its ability to fuel growth through borrowing due to high national debt. He suggests that private and international investments will be crucial for future economic growth.
Foreign Investment Projects Down 6%
The Department of Business and Trade reports a 6% decline in overseas investment projects in the UK for 2024, with software and financial services receiving the most investment. London led the way with 503 FDI projects.
REAL ESTATE
House Prices Over-Valued, Says Zoopla
Zoopla reports that UK house prices are over-valued by nearly £20,000 in terms of affordability. However, rising incomes and longer mortgage terms are expected to improve affordability, eliminating the over-valuation by the end of the year.
Mortgage Payments for First-Timers Climb 61%
The average mortgage payment for first-time buyers in the UK has risen by 61% over the past five years, making it increasingly difficult for first-time buyers to afford a home without financial assistance.
FINANCIAL SERVICES
Nearly 90% of Financial Services Firms Confident About Year Ahead
A survey by Davies reveals that 89% of financial services firms are confident about their performance for the upcoming year, despite the challenging economic climate.
FCA Sees Increasing Number of Crypto Firm Registrations
The Financial Conduct Authority (FCA) reports an increase in the number of crypto firms achieving registration. The FCA continues to work with potential entrants to meet anti-money laundering standards.
BANKING
Mortgage Costs to Rise for 3 Million Households
The Bank of England’s latest Financial Stability Report indicates that around 3 million households will see their mortgage payments increase over the next two years, with 400,000 facing substantial payment hikes.
Barclays, HSBC, and NatWest Cut Mortgage Rates
Three major lenders have reduced mortgage rates, suggesting a potential broader decline in home loan costs. The average rate on a two-year fixed deal now stands at 5.96%.
RETAIL
UK Retail Sales Bounced Back in May
UK retail sales saw a 2.9% increase in May, with strong performances in clothing and furniture stores. Non-food store sales volumes rose by 3.5%, the largest monthly rise since April 2021.
Supermarket Sales Rise 1.1% in June
Sales growth at British supermarkets slowed to 1.1% in June, compared to 3.3% in May. Ocado remains the fastest-growing grocer, with sales up 12.6% in the 12 weeks to June 15.
AUTOMOTIVE
Stellantis Boss Warns UK Production Could End Over EV Rules
Stellantis, the maker of Peugeot, Citroën, Vauxhall, and Fiat vehicles, warns that UK production could end due to electric vehicle (EV) production rules. The company faces fines for not meeting the required EV sales percentage.
Car Manufacturing Output Falls in May
UK car manufacturing output fell by nearly 12% in May as assembly lines retooled for electric vehicles. Despite the decline, electrified vehicle production remained robust.
MEDIA & ENTERTAINMENT
Poor Network Puts UK’s AI Hopes at Risk
Vodafone CEO Margherita Della Valle warns that substandard mobile data networks could hinder the UK’s ambition to become an AI leader. She highlights the need for improved cellular networks to support AI growth.
OTHER
Brits Opting for Experiences Over Items
A poll from Barclays indicates that Brits are increasingly spending on experiences rather than purchases, with a projected £178bn to be spent on experiences between June and September.
CLOSING THOUGHTS
As we conclude this week’s Panthera Consultancy Weekly Newsletter, we highlight the optimism surrounding the UK economy and the challenges in the real estate and automotive sectors. What do these developments mean for your business? Opportunities for strategic planning and potential growth in various sectors could be on the horizon.
If you’re interested in finding out how your business could benefit from these developments, get in touch with us today and see what finance options could be available to you!
Email: info@pantheraconsultancy.com
Phone: 0208 132 6872
Thank you for being a valued reader. Until next week, stay informed and stay ahead!
With my kindest regards,
Benjamin Vis
Managing Director – Head of Business Lending
Panthera Consultancy – Unmatched in the Financial Kingdom
Email: benjamin@pantheraconsultancy.com
Phone: 0208 132 6872 / 07933145994