On Wednesday, the US entered its first federal government shutdown in nearly seven years after Congress failed to pass a funding bill for the new fiscal year. The deadlock stems from disputes over healthcare subsidies and Medicaid cuts, with Democrats demanding extensions to Affordable Care Act provisions and Republicans resisting increased spending.
Approximately 750,000 federal employees face furloughs, some of which President Trump has suggested may become permanent layoffs, while essential services like air traffic control and law enforcement continue without pay. The shutdown is expected to cost the economy $400 million per day, and cause delays to the release of key economic data, such as the jobs figures that were due on Friday.
Markets pushed on despite the news, with the FTSE100 hitting a new record high on Wednesday, up 1.0% on the day, and the S&P closed out the day 0.3% higher.
Approximately 750,000 federal employees face furloughs, some of which President Trump has suggested may become permanent layoffs,
UK shop price inflation rose to an annual rate of 1.4% in September 2025, up from 0.9% in August, according to data released by the British Retail Consortium this week. This marks the highest rate since March 2024 and reflects mounting cost pressures on retailers. While food inflation remained steady at 4.2% year-on-year, non-food prices, which had been falling for 18 months, showed signs of stabilising, with prices declining less than the previous month. Categories such as DIY and gardening saw modest price increases. The BRC warned that upcoming changes, including a new packaging tax and higher national insurance contributions, could further strain margins and push prices higher in the coming months.
UK house prices rose by 0.5% in September, bringing the average property value to £271,995, according to data released by Nationwide on Thursday.
UK house prices rose by 0.5% in September, bringing the average property value to £271,995, according to data released by Nationwide on Thursday. Annual growth stood at 2.2%, slightly up from 2.1% in August. Semi-detached homes experienced the strongest quarterly price rise at 3.4%, while flats declined slightly by 0.3%.
Our specialist's final thought
"Analysts note that despite economic uncertainty, low unemployment and rising wages are helping to support buyer confidence."
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