By Max Clarke

UK Unemployment has defied expectations; witnessing a slight drop of 0.1%. The last quarter saw the numbers of unemployed dip back down from their last quarter high of 2.53 million.

Combined with yesterday’s trade data showing that British exports had grown in volume while inflation witnessed a slight drop , could indicate tentative signs of recovery.

While showing signs of decline, unemployment still poses a concern, with 1/3 million fewer adults in employment this quarter than in the pre-recession peak of 29.6 million.

Pay growth, however, remains low, with 1.9% salary growth in the private sector and 2.3% in the public remaining far below consumer price inflation at 4%. Disposable income for UK households will continue to decline, further reducing spending power and consumer confidence.