In three economies payroll employment fell by 78,000 over the year while retail sales growth stayed at 0.6 per cent and annual inflation rose to 3.0 per cent
In three economies payroll employment fell by 78,000 over the year, retail sales grew only 0.6 per cent in July, and inflation reached 3.0 per cent; employment, demand and price pressure are not moving together.
Economics & Markets··Midday
Britain’s unemployment was 4.9 per cent as payroll jobs fell
According to the Office for National Statistics August 2026 labour market bulletin, the unemployment rate for people aged 16 and over was 4.9 per cent in the three months to June, 0.2 percentage points higher than a year earlier and 0.1 points lower than the previous quarter. The employment rate for people aged 16 to 64 was 75.1 per cent, down 0.2 percentage points over the year and up 0.1 points on the quarter. Payrolled employees were 78,000 lower than a year before and largely unchanged on the month, down 13,000. Average regular pay grew 3.5 per cent over the year and total pay including bonuses grew 4.1 per cent; public sector regular pay grew 6.1 per cent against 2.8 per cent in the private sector. Vacancies fell to 707,000 in the three months to July, a decline of 6,000 or 0.8 per cent on the previous quarter.[1]
China’s retail sales rose only 0.6 per cent in July
According to official activity data released on 17 August, industrial value added rose 4.5 per cent year on year in July and retail sales rose 0.6 per cent. The surveyed urban unemployment rate was 5.2 per cent, 0.2 percentage points higher than in June. Property development investment fell 19.2 per cent year on year in the first seven months and sales of newly built commercial buildings fell 13.1 per cent. Fixed asset investment fell 1.42 per cent month on month in July. Exports reached 2,712.5 billion yuan in the month, 17.8 per cent higher than a year earlier. Industrial growth sat alongside weak retail and property readings in the same official monthly print.[2]
Canada’s inflation accelerated to 3.0 per cent
Statistics Canada reported that the Consumer Price Index rose 3.0 per cent year over year in July, up from 2.8 per cent in June, and 0.5 per cent on the month. Excluding gasoline, the index rose 2.2 per cent for the third consecutive month. Gasoline prices were 25.7 per cent higher than a year earlier, against 20.5 per cent in June. Statistics Canada links the increase to the conflict in the Middle East, including the blockade of the Strait of Hormuz and the partial closure of Red Sea shipping routes in late July. Transportation prices rose 7.8 per cent over the year and travel tour prices 15.2 per cent, while food bought from stores rose 3.1 per cent, down from 3.9 per cent. Shelter costs rose 1.3 per cent. On a seasonally adjusted monthly basis the index rose 0.3 per cent.[3]
