- Growth in the major overseas economies is recovering after faltering in the first half of this year.
- With many commodity prices falling, and labour costs continuing to rise only slowly, inflation in the major overseas economies remains on a downward trend.
- The dollar's exchange rate has fallen further since agreement was reached among the authorities of five major industrial economies that it should better reflect fundamental economic conditions.
- At home there are some signs that the economy has been expanding more slowly. Consumption has continued to grow, but investment, after a temporary surge in the first quarter, was little changed in the third, and the real trade balance deteriorated.
- The growth of UK labour costs has accelerated, but import prices have fallen, and retail prices have risen more slowly. Company profitability improved in the first half of the year.
- Liquidity in the economy continues to grow more rapidly than nominal GDP.
Published on
01 December 1985