#market-confidence

#market-confidence

Chancellor Reeves faces a £20-30 billion shortfall in the public finances, and with few easy options, investors are preparing for a new round of austerity which is focused on tax rises rather than spending restraint. Economic indicators are already flashing warning signs: unemployment has risen to a post-pandemic high of 5%, and growth momentum is fading. Against this backdrop, the pound's next move will depend on whether the Budget restores confidence in the UK's fiscal trajectory, or deepens fears of stagnation.

Foreign investors invested a record $311.1 billion in U.S. securities in May, reversing a $14.2 billion withdrawal in April, as tariff fears eased.

British Airways parent company International Consolidated Airlines Group (IAG) is moving ahead with a $23 billion aircraft order, indicating confidence in market demand despite economic challenges.

The tariff announcement has shocked consumer and business confidence, and the high expectations the investor and business community had in the administration have been dashed.

The average opinion is now I wish we could scrap the OBR. In September it was we should strengthen the OBR, one source said, showing how far things have come.