UK Business Pessimism, Cooling Wage Growth, and Labor Market Stability

UK businesses are growing increasingly pessimistic, leading to hiring freezes and staff cuts. Wage growth in the UK has cooled slightly, easing pressure on the Bank of England to hold interest rates. The Bank of England Governor stated that potential growth in the UK has fallen due to changing attitudes to work and sluggish business investment. Despite a near recessionary environment, the euro zone labor market shows no signs of weakening. UK wage growth has slowed as the Bank of England raises interest rates to tame inflation.