By DUNCAN SCOTT 08/10/2010
A round up of the latest major economic news and developments from the last week.
UK House prices show record fall
This week saw the release of the housing data from Halifax for the month of September. The reported figures show a decline of 3.6% for the months suggesting a continuing weakening market as this price fall also suggests accuracy in the data that mortgage approvals were down. The fall was the biggest monthly decline since records began in 1983, however the data should be taken with a slight pinch of salt as rival broker Nationwide reported a 0.1% gain in prices over the same period. The news did not alter the Bank of England approach to Interest Rates this week as it remained at 0.5%.
US Employers cut more jobs
September saw the US lose of a further 95,000 jobs, the fourth month in a row the Labour Department has reported losses. This cut was higher than forecast though the unemployment rate held at 9.6% against expectations. Unemployment in the US has not fallen below 9.5% for 14 months consecutively, the longest span since monthly records began in 1948. Drilling down deeper into the figures, the declines in jobs occurred mainly in federal and state government along with services and manufacturing, while retailers actually hired workers this month.
Japan pumps economy
This week the Japanese cabinet agreed the plan to inject more than £38bn into the economy that is continuing to struggle. The aim of the plan is simple, boost jobs and spending in the country and as a result attempt to stimulate growth. The cabinet could not ignore the continuing deflation and strong currency as consumers at the moment hold off spending. Consumers expect prices to keep falling and therefore are holding off making purchases as they wait for a cheaper deal. The package aims to boost growth by up to 0.6% as well as creating and saving jobs, and is to be run in conjunction with a deficit programme to cut this over the medium term.
And finally,
We in England are known to like spending the summer months attending music festivals with there now a growing number each year across the country, appealing to a diverse and wide ranging demographic. However, none of these compare to some seen around the world, with a list being published this week of the top 10 weirdest festivals you could attend. On the list appears a 1 hour tomato fight festival in Spain, chasing huge balls of Double Gloucester cheese down hills, and a whole festival dedicated to garlic in California. Do not be put off if you don’t like garlic, musicians and artists are also welcome to perform and sell their garlic based masterpieces.