There has been a sharp contrast in the United Kingdom this year between the persistent sluggishness of the real economy and the transformation of the overall financial position. Output has been stagnant since the beginning of the year and unemployment was higher in the third quarter than at any time since the war. There are, however, now signs that demand may be picking up. The pace of inflation has been falling, though further progress will depend increasingly on the outcome of the present wage round.
Published on
01 December 1977
Economic commentary