WAGE GROWTH SLOWS TO WEAKEST IN NEARLY A YEAR 

Wage growth in the UK slowed from 7.2 per cent to 6.6 per cent in the three months to November, its weakest pace in just under a year, according to new data from the Office for National Statistics (ONS) (The Times).  

Wage growth including bonuses was 6.5 per cent, which was still below the 6.8 per cent predicted by economists. With inflation continuing to fall, however, real terms pay rose 1.3 per cent between September and November (City AM).

NAO ARGUES GOVERNMENT MUST MODERNISE INFRASTRUCTURE TO SAVE

The UK government could save at least £20 billion a year by modernising IT systems, tackling fraud and getting a grip on failing mega-projects such as the HS2 rail line, the head of the National Audit Office (NAO) Gareth Davies will say in a speech today (Financial Times). 

Noting the limited fiscal headroom for any incoming government, Davies will argue that to fund public services, money must be found through addressing the UK’s crumbling infrastructure and taking a new approach to major building projects (The Guardian).  

NEWS IN BRIEF

The prospect of recession looms for Germany as new data from Destatis shows that its economy is likely to be the only one in the G7 to have contracted in 2023 (The Times).  

A fresh wave of strikes has been announced by train drivers’ union Aslef, between Tuesday 30 January and Monday 5 February (BBC News).  

Mergers between financial services firms could be set for a rebound this year despite UK deals in the sector slumping to a nine-year low in 2023, according to EY (City AM).