Recession confirmed

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It's official

Two consecutive quarters of shrinking GDP means that we’re technically in a recession. Considered to be “the broadest measure of economic prosperity”, GDP fell in the three months to June by 21%.

Record amounts of consumer debt repaid

Data from the Bank of England shows that consumers repaid £7.4bn in April - the largest amount on record since 1993. Ernst & Young is forecasting a reduction in consumer lending by up to 16% in 2020. Whilst consumers cut back on credit cards and personal loans, business borrowing is projected to grow by 14%.

Adviser comment: "This demonstrates the general savings the nation has seen throughout lockdown, but you should balance clearing debt with ensuring you save for an emergency fund. Check in to see if we recommend you to focus on clearing debt, building an emergency fund, or a mix of the two."

Autumn redundancies expected

One in three surveyed employees are planning to make redundancies between July and September. Three months ago that number was one in six. On the flip side, hiring confidence is beginning to rise, with one in two saying they’re planning to hire in the same period.

Adviser comment: "With jobs now at risk the need to save for a rainy day fund is clear. Check in to see how much we recommend you should target for your own personal emergency fund."

Looking to move?

An individual buyer is being sought after for a London mansion listed at £185M*. Overlooking Regent’s Park, the price tag would make it the UK’s second most expensive house purchase. According to Savills, average prices for £10m-plus properties fell 21% from 2014 to 2019, and the pandemic has caused further uncertainty.

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