Not exact matches
Vanguard says investors should pay more attention to
low unemployment rates than GDP
growth at this stage of the cycle for prospects of either higher spending for capital expenditures or wage
pressures.
Combining this with poor sales
growth results in a dismal outlook for earnings 3) the
pressure on earnings will continue to hurt capital spending, which is usually just a magnified image of earnings, 4) the same factors will continue to raise default rates, causing earnings problems and debt downgrades among banks and financial companies, 5) earnings shortfalls will also lead to continued job cutbacks, with the unemployment rate rising to
at least 5.5 % (indeed, once the unemployment rate has advanced by 0.5 % from its
lows, it has never reversed until rising by least 1.5 % off those
lows).
Explaining the rate hike, BoE Governor Mark Carney cited a record
low level of unemployment, inflation above the BoE's target of 2 % and the UK economy's reduced
growth capacity, which policymakers believe has
lowered the threshold
at which it can expand without creating pricing
pressures.
Upward
pressures such as
lower prices and sales are being countered by
lower employment and income
growth, leaving the market
at a safe, sustainable level which Porter describes as «something closer to normalcy.»