U.K. Payroll Data Could Raise Nerves Among BOE Policymakers

Dow Jones10-20

1217 GMT - So far, the Bank of England has said a loose labor market reduces risks of second-round effects from the energy shock, but Tuesday's data point to a healthier jobs market and could unnerve policymakers, Investec's Ellie Henderson says in a note. The latest estimate of payrolled U.K. employees point to an early turn in conditions, she says. The 13,000 on-month increase in September might only be a small gain, but it is the biggest monthly increase since August 2025. BOE policymakers will take note, even if this isn't definitive evidence of firmer conditions. "If committee members are becoming increasingly nervous about the medium-term inflation outlook, as we suspect, today's report will only add to those nerves," Henderson says.

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