Christmas may be over but the gifts keep on coming, with two reports showing wage growth and accelerating output from British businesses.
According to a study by the jobs search engine Adzuna, the average salary for vacancies advertised online in November was 1.2% higher than the same month a year before – the first annual increase recorded by the website since June 2015. Meanwhile, a survey by the business group the CBI found firms reporting a rise in economic output.
The studies are likely to reassure the Bank of England that the UK can cope with last month’s rise in interest rates – the first in a decade – when the central bank increased the cost of borrowing from 0.25% to 0.5%.
The evidence of pay growth could also help it to raise rates again next year because higher wages could lead to firms hiking the cost of their goods and services to accommodate paying staff more money.