...According to the latest figures from the Office for National Statistics (ONS), the UK's unemployment rate remained largely flat, at 5.6%, over the three months to May 2015. This is close to the lowest level seen since August 2008. Fitch expects unemployment to remain broadly stable, forecasting 5.4% in 2015 and 5.3% in 2016, and thus productivity to improve as GDP growth continues. The 3MA earnings rate, including bonuses, rose by an annual rate of 3.2% on a nominal basis in the three months to May, well exceeding the 1.7% achieved as of February. In the meantime, inflation - captured by the Consumer Price Index (CPI) - remained near zero, thus improving the purchasing power of UK households. This low level of inflation, well below the Bank of England's 2% target, is expected to persist in the short term. The UK continued to record positive growth in economic output, with GDP growth accelerating to 0.7% in the second quarter of this year, compared with 0.4% in the preceding quarter. ONS...
