UK household incomes fell for an unprecedented fourth quarter as the cost-of-living crisis continues to affect budgets. The 0.2% decrease in disposable income in the first three months of this year marks the longest period of decline since records began in 1955. It also leaves revenues 1.3% lower than a year ago – even before energy bills and taxes rose in April. The figures underscore the continuing pressure on household finances amid rapidly rising inflation fueled by Russia’s war in Ukraine, with prices rising for everything from food and fuel to clothing. The ONS confirmed a 0.8% increase in GDP in the first quarter. However, the economy is expected to shrink in the second quarter as consumers begin to cut spending.

5 things to start your day with

  1. Oligarchs ‘must be prosecuted’ for dirty money in London MEPs warn of government inaction in UK as ‘safe haven for corrupt wealth’
  2. Britain is experiencing a faster and sharper recession than Europe, warns Bank of England Governor Andrew Bailey, says the country is experiencing “a very large national real income shock”
  3. Roasted Heinz beans removed from Tesco shelves in a row due to ‘unjustified’ price increase Supermarket targets buyers in competing products
  4. Criminals who use “deepfakes” to apply for jobs at home The FBI warns that fraudsters are “voice forgery” in attempts to steal corporate information
  5. Britain risks trade war as steel tariffs extended Steel tariffs extended by two years over possible trade breach

What happened overnight

Tokyo shares opened lower this morning after US stocks fell steadily, with investors looking for new trading data. The Nikkei 225 index fell 0.2% in the open level, while the broader Topix index lost 0.3%. The Dow Jones Industrial Average closed 0.3% higher while the S&P 500 broadly slipped 0.1%. The technology-rich Nasdaq index fell less than 0.1%. Global markets were strained when US Federal Reserve Chairman Jerome Powell addressed a panel at the ECB Forum.

He is coming today

Company: Bunzl (statement of transactions) Economics: GDP (United Kingdom), National Housing Price Index (UK), Unemployment Rate (EU), Unemployment Claims (US), Personal Income (US), Chicago PMI (US)