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    Tag: inflation

    Market update: what’s happening and what it means for you

    Posted on by Rebecca Campbell

    As the summer months rolled in, global financial markets seemed to take a breather from the drama of trade tensions and political headlines. Instead, investors shifted their focus back to the basics: how companies are performing, how economies are growing, and the ongoing excitement around artificial intelligence (AI).

    Economic overview: mixed signals across the globe

    While most regions saw little change in economic growth, the United States raised some eyebrows. A major revision to job data revealed fewer new jobs than previously thought, and economic activity slowed during the summer. This led to increased concern about the health of the US economy.

    The US dollar, which had been weakening throughout 2025, found some stability during the quarter. It even regained some ground against the British pound, which is important for UK investors with exposure to US assets.

    Inflation: a growing concern

    Inflation (how fast prices are rising) is becoming a bigger issue, especially in the UK. We’ve been watching this closely, and now it’s clear that inflation could reach double the Bank of England’s target before the end of the year. That means everyday costs could continue to rise, affecting everything from groceries to housing.

    In the US, inflation is also creeping up. However, many companies are choosing to absorb these higher costs themselves rather than pass them on to consumers, likely due to uncertainty about the economy.

    Bond markets react

    Bond markets, which often signal investor expectations about inflation and interest rates, responded to these concerns. Yields on longer-term bonds rose in many countries, reflecting uncertainty about future inflation. In the UK and US, government spending plans added another layer of complexity.

    In the US, the Federal Reserve (America’s central bank) responded to weaker job numbers by cutting interest rates in September, a move aimed at managing risk and supporting the economy. However, not all Fed officials agreed on the path forward, with some suggesting rates should fall below 3% by year-end.

    Back in the UK, the Bank of England faces a tough balancing act. Inflation is proving stubborn, especially in areas like housing and services, making it harder to decide whether to raise or lower interest rates. This uncertainty caused the UK bond market to shift slightly, as investors tried to make sense of the situation.

    Stock markets: AI and emerging markets shine

    Global stock markets saw a shift in leadership this quarter. The US continued to perform well, driven by enthusiasm around AI and related investments. But it wasn’t the only star.

    China stood out, with its tech sector attracting investors thanks to lower valuations compared to the US. Taiwan and South Korea also delivered strong returns, although India’s stock market lagged behind.

    Closer to home, UK and European markets made gains, especially among larger companies. Japan’s market also picked up, helped by a new trade deal with the US and strong company fundamentals, including widespread share buybacks.

    Looking ahead: what should investors expect?

    The more positive mood over the summer has pushed many stock markets into double-digit returns for the year so far. However, UK investors with overseas holdings may have seen some of those gains reduced due to the weaker pound.

    There’s an interesting contrast between stock and bond markets, especially in the US. While bond investors are worried about slowing economic growth, stock investors remain optimistic, focusing on AI innovation and increased merger and acquisition activity.

    Bond markets often spot trouble before stock markets do, but they can also overreact. In the UK, bond investors are more focused on inflation and how it might be controlled without hurting the economy.

    As we head toward the end of the year, expect more headlines about inflation, interest rates, and economic growth. But remember: not all noise is worth reacting to. Staying focused on long-term goals and maintaining a well-diversified portfolio is often the best approach.

    Get in touch

    If you would like to discuss your investments in more detail, or require tailored advice specific to your situation, please get in touch by emailing financialplanning@pmm.co.uk or by calling 01254 679131.

    The value of investments can fall as well as rise. You may not get back what you invest.

    The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.

    5 ways to secure your financial future

    Posted on by Georgia Flatley

    When planning your future, it is important to look at ways to secure and take control of your finances. Building a plan allows you to prepare for anything unexpected and help you feel confident about your future.

    There are many ways that you can look at doing this, but our financial planning team provides their top 5.

    1.Take the appropriate level of risk

    It is important to take the appropriate investment risk within financial planning and this is important when trying to build your financial future. Holding money in cash could mean that you are subject to ‘inflation risk’ i.e. the risk of your money not keeping pace with rising prices. A cashflow forecast can highlight how much growth you need to drive sustainability, allowing you to take the appropriate level of investment risk. A financial adviser would ensure that you diversify your portfolio appropriately to help you meet these growth objectives.

    2.Have an emergency fund

    Having an emergency fund is crucial to prepare you for any unexpected events / changes that may happen within your life. Once you initially use the fund it is important to regularly top it up in case something unexpected should happen again. Having this fund in place can provide peace of mind and improve your financial wellbeing.

    3.Cash flow to test goals and objectives

    A cashflow allows you to test your objectives and in turn create a financial plan with your financial adviser, to ensure that you have enough money to fund what you need. By modelling a cashflow forecast, we can make sure that you are on track to have sufficient funds in place to ensure that you can sustain your retirement. We can offer a sense of direction to ensure that you know what is required to reach your retirement goals and consider different scenarios in some ‘what if’ scenarios.

    4.Protect yourself and your money

    Like having an emergency fund, it is important that you take out protection for your money and yourself to prepare yourself for the unexpected. You can protect your income if you are unwell or have an accident, provide a lump sum in the event of serious illness or provide some capital or income for your loved ones in the event of death. Cashflow models can help to determine what levels of cover you need.

    5.Build a retirement plan sooner rather than later

    Although for many, retirement may seem a long time off, the younger you start building your pension pot the sooner you will be able to enjoy the retirement you have dreamed of! You can continually review your retirement plan with your adviser so that you can align it with your goals and objectives, and provide the reassurance that you are on the right track.

    Get in touch

    For further information or advice on how you can plan ahead to secure your financial future, contact a member of our financial planning team today to talk through your personal circumstances by emailing financialplanning@pmm.co.uk or call 01254 679131.

    The information contained within this article is purely for information purposes and does not constitute financial advice.

    What does rising inflation mean for your savings?

    Posted on by Rebecca Campbell

    It is a well-known fact that inflation is on the rise and will likely be around for some time to come. Households across the UK are feeling the effects of higher prices, with food, energy and fuel costs increasing dramatically. On 16 June 2022, the Bank of England’s Monetary Policy Committee (MPC) raised interest rates to 1.25% to help counteract rising inflation – however, this is still much lower than the rate of inflation which stands at around 9%, the highest rate for 40 years (with predictions that this will rise further). Due to this, there is a growing concern for those who have put money into savings. in our latest blog, we discuss what inflation could mean for the cash you’ve set aside and what you could do to reduce the impact.

    The impact of inflation on your savings

    The rate of inflation can impact your savings in many ways. In most cases, high inflation is a cause for concern as it could mean:

    1. Inflation affects the purchasing power of your money

    If inflation grows at a higher rate than your savings, your money will lessen in value (you won’t be able to purchase as much as before).

    For example:

    If you have put aside £10,000 and the rate of inflation increases at a rate of 2.5% per year, in ten years’ time, the purchasing power of the money you have saved could drop to the equivalence of £7,812.

    1. Inflation may mean you are saving less in the short term

    The cost of living has rapidly risen due to increasing prices – more and more people find themselves borrowing money and saving less to try and maintain their current lifestyle.

     

    How to reduce the impact of rising inflation on your savings

    There are a variety of things you can do to keep up with the rising rate of inflation – in some cases, you may even be able to help your money grow past the rate of inflation.

    1. Consider other investment options

    If you want to beat inflation, you may want to consider putting your money into medium- or long-term investments (five years or more). Unlike savings, investments have more potential to grow over time.

    At PM+M, we offer a bespoke managed portfolio service (in partnership with AJ Bell) which we continually monitor, conduct ongoing due diligence in funds held in the portfolio and proactively make fund and asset allocation changes when we feel as though this is necessary. You can find out more about our portfolio service here.

    1. Take advantage of tax breaks

    Investments aren’t the only way you can protect your savings from losing value. Make use of any tax breaks that are available to make the most of your savings and investments.

    ISAs are a popular and tax-efficient way of investing your cash in the long term –a £20,000 tax-free allowance per tax year is available to everyone and goes a long way to help you maintain the value of your money. There are four types of ISAs available:

    • Cash ISAs
    • Stocks and shares ISA
    • Innovative finance ISA
    • Lifetime ISA

    You can invest in more than one type of ISA, but your maximum allowance will remain at £20,000 between all of your accounts.

    Pension schemes are also a great tax-efficient way of making the most of your savings. Currently, you can obtain tax relief on a maximum of £40,000 (the annual allowance). However, your personal annual allowance could be less than this dependent upon earnings. The tax relief you receive is based on your taxable income and can vary – read more here.

    Get in touch

    The volatility of inflation means it can be more difficult to ensure the money you put aside is working as hard as it can for you and your future. If you would like to discuss your options, get in touch with our financial planning team (financialplanning@pmm.co.uk).

     

    The value of investments can fall as well as rise. You may not get back what you invest. Past performance is not a reliable indicator of future performance.

     

     

    A ROUNDUP OF OUR ‘NAVIGATING THE NOW AND NEXT’ EVENT – THURSDAY 31 MARCH

    Posted on by Rebecca Campbell

    The fourteenth in the series of PM+M’s ‘Navigating the Now and Next’ virtual panel events took place on Thursday 31 March, facilitating discussion between a panel of speakers on the current challenges faced by businesses and highlighting support, guidance and best practice to navigate these going forwards.

    Hosted by our very own Neil Welsh, with digital hosting managed by our friends at The Landmark in Burnley, we welcomed panellists:

    Frazer Durris – CEO, Businesswise Solutions

    Caroline James – Managing Director, Trevor Dawson Commercial Property Consultants

    Paul Spencer – Partner, PM+M

    Jenny Heyes – Head of People Projects, Napthens LLP

    Following the opening introduction and welcome from Neil, Frazer Durris (Businesswise Solutions) kicked off proceedings by discussing something very apt in the current climate – rising energy prices.  Frazer explained how inflationary pressures, in particular the volatility caused by the Ukraine-Russia crisis, may cause a problem in the short term for the energy sector, but there is a positive takeaway in that the UK are now looking at more sustainable sources of energy which will hopefully reduce the reliance on volatile gas prices in the long term. Furthermore, the ongoing trend of more businesses placing sustainability and low-carbon at the forefront on their agenda has seen a rise in salary sacrifice schemes for electric vehicles and the installation of EV charging points and solar panels – something which we may see gain even more traction moving forward due to rising fuel prices. However, Frazer explained that there is an especially high demand for solar electricity panels at the moment – warning attendees of the current lead time of 30 weeks.

    Caroline James (Trevor Dawson Commercial Property Consultants) steered the conversation towards trends in the property sector, describing how the Lancashire property market is holding reasonably well given the threat of inflation – partially due to the reliability of the industries and family businesses around East Lancashire (of which engineering is very successful) and overseas investment (mainly coming from Europe and America).

    Caroline went on describe the problems she has encountered with the fast-increasing prices of property and land in the area, which could be detrimental in the long term. Commercial property prices have increased by about 30%-40% in the last two years and rent has seen an increase of 50% (from £4 per square ft. 3 years prior, to £6 per square ft.). Caroline described how a solution to this problem may be for businesses to look at greenbelt land or consider a merger with another business in the industry to ease the struggles of finding space.

    Next up, Paul Spencer (PM+M) detailed his own experience of a merger, between Haworths Chartered Accountants and PM+M. Paul described the reasons why Haworths were looking to merge with another firm, including succession planning and struggles with recruitment, detailing how PM+M were the perfect fit as we share a client-focused approach. There was an assurance that clients could be handled more efficiently, due to the variety of services offered at PM+M, as well as the certainty that employees at Haworths now had a secure future.

    Our final panellist, Jenny Heyes (Napthens LLP), discussed her role as the Head of People and Projects at Napthens, detailing how inflation is further increasing the challenges businesses are currently facing in terms of staff retention and recruitment, otherwise called the ‘great resignation’. Jenny suggested that problems could be alleviated through strategic workforce and succession planning – offering employees improved salaries is one option but opportunities for career growth, development and culture are also valued in the current climate with rising living costs and inflationary pressures.

    Additionally, Jenny detailed how employee branding is becoming a significant factor in the recruitment field, where the focus is on the value-add, positive influence and corporate social responsibility of a business, and what this can offer potential employees when deciding on their next move.

    Neil brought the panel discussion to a close and opened the floor to the audience, with additional comments and thoughts from Andy Platt (Simply Corporate), Azeem Khan (Gemini GRP) and Claire Rhodes (The Landmark), before thanking Claire for hosting the event.

    If anyone would like to be introduced to members of the panel or audience, included in the invite for next month’s event or wish to speak to one of the PM+M team about our services, please get in touch with Neil Welsh via the button below.