Member Article

Recovery in wages could be now

Wages are set to rise by more than inflation for the first time in almost six years, a new forecast from big four auditor EY suggests.

The firm say a period of low infaltion means average earnings could rise faster than the cost of living as early as this month.

Peter Spencer, chief economic Adviser to EY ITEM Club, said: “While risks remain, there’s no question that the UK’s economic recovery is on an increasingly firm footing.

“With GDP projected to grow 2.9% this year and 2.3% in 2015, and interest rates unlikely to rise until late 2015, the outlook is for a period of ‘steady as she goes’, characterised by sustained if unspectacular growth and underpinned by relatively low inflation.”

This was posted in Bdaily's Members' News section by Tom Keighley .