Sterling up as jobless figures fall
STERLING soared after unemployment in Britain fell to its lowest level for more than seven years amid signs private business is booming.
The Office for National Statistics said the jobless rate in the UK fell to 5.4pc between June and August – a level not seen since early 2008.
Employment hit a record high – up by 140,000 in just three months to 31.12m – and wages were up 3pc at a time when inflation is hovering around zero.
Separate figures from the Department for Business, Innovation and Skills showed there are now a record 5.4m privatesector businesses in the UK – up by 900,000 since 2010. James Sproule, chief economist at the Institute of Directors, said business is ‘powering the economic recovery’ in Britain.
‘Despite uncertainties, employers have continued to create jobs, raise productivity and boost pay in a vote of confidence in the British economy,’ he said.
The pound soared above $1.54 and €1.35 as investors bet interest rates could rise sooner rather than later. It followed a fall earlier in the week after inflation fell to minus-0.1pc.
James Knightley, an economist at ING, said: ‘Substantial increases in earnings should help boost consumer spending. This offers more evidence that expectations of the first rate rise being more than a year away seem too cautious.’ SHARES in Domino’s Pizza rose 13pc to an all-time high after the home-delivery chain said a big rise in diners ordering meals online helped to lift full-year profits forecasts. Shares closed up 112p to 1002p after it said more than 75pc of sales now come from its app on mobile phones or computers. It said advertising around the TV soap Hollyoaks also raised awareness. The group, which has over 800 stores in the UK and operates in Ireland, Switzerland and Germany, said underlying sales rose 14.9pc for the 13 weeks to 27 September. It is on track to open at least 50 stores in the UK this year. Chief executive David Wild said: ‘This marks the eighth quarter in a row of doubledigit likefor-like sales growth.’