Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “UK labour market data is starting to show early signs that higher energy costs linked to the Iran war are feeding through into business hiring plans, with payroll employment falling by 11,000 in March and job vacancies slipping from 721,000 to 711,000.
“Pay growth is also beginning to ease, with average earnings slowing to 3.8 per cent and the more timely PAYE median pay measure suggesting further softening could be on the way.
“For investors, a loosening labour market reduces the likelihood of further interest rate hikes, which helps to firm up our view that the Bank of England will keep things on pause until the conflict plays out.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.