This commentary discusses a number of themes of topical interest. They are:
- The world economy-still subdued, though prospects look brighter.
- UK prices, affected by domestic costs and profit margins, and import prices (in turn influenced by movements in the exchange rate).
- Personal income, spending and saving-the point of interest being a large decline in the saving ratio, to which the fall in inflation has contributed.
- Other elements of demand, and output which so far has only partly responded to the revival of spending.
- External trade and competitiveness following the decline in sterling.
- Company profitability and finance, on which many of these factors bear.
Economic commentary