Economic week ahead
Chancellor Rishi Sunak’s pumppriming of a Covid-blighted economy pushed the national debt past the £2 trillion mark for the first time in July and more of his largesse will be present in Friday’s figures.
August saw the £500m Eat Out To Help Out scheme subsidise more than 100m meals and the bill is likely to rise further as cafes and restaurants have until the end of the month to claim. A bigger impact than his dining generosity is the second tranche of support for self-employed workers, which hit bank accounts in August. Though the reopening of the economy is likely to have brought in at least some tax revenues, economists at Investec still expect borrowing of at least £40bn in a single month as the spending spree continues.
Andrew Bailey, Bank of England Governor, may drop more hints tomorrow over negative rates at a British Chambers of Commerce webinar, but otherwise it is a quiet week for official data.
More timely purchasing manager surveys for September could paint a more worrisome picture of the impact of Covid.