Output and employment have improved in recent months, due to the delayed effects of more favourable conditions in the world economy and the growth of domestic consumer spending. Despite the most recent monthly figures, the rate of unemployment appears to be on a downward trend which is consistent with developments in output and employment, although government labour market initiatives are likely to have played a significant role. The future course of the rate of inflation and the balance of payments gives some cause for concern, suggesting that a fiscal stimulus, particularly in the form of income tax cuts , would be a less than appropriate strategy in the coming Budget.
|Number of pages||10|
|Journal||Quarterly Economic Commentary|
|Publication status||Published - 1 Feb 1987|
- Fraser of Allander
- British economic activity
- British economic conditions