PTEC, VVO, TSCO: Stocks you may explore as pay deals hit 4%

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PTEC, VVO, TSCO: Stocks you may explore as pay deals hit 4%

 PTEC, VVO, TSCO: Stocks you may explore as pay deals hit 4%
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Highlights

  • UK employers have raised the average pay of their staff by 4% in the three months to April, as per XpertHR.
  • This 4% hike marks the biggest increase in the pay of UK employees since 1992.
  • According to budget analysts, the UK is facing the worst cost-of-living crisis since records began in the 1950s. 

Amid the spiraling cost-of-living crisis, UK employers have raised the average pay of their staff by 4% in the three months to April, according to a survey conducted by XpertHR. Working under 255 employers, over 830,000 employees were covered in the survey by XpertHR. This 4% hike is the biggest increase in the pay of UK employees since 1992.

UK pay deals hit 4% amid rising inflation

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However, this increase may not be enough for the households to tackle the escalating inflationary pressures. For three months straight, pay awards were stuck at 3% before they finally rose to 4% in April, which is the key month for pay deals. The Bank of England (BoE) is closely monitoring the measures of pay growth as it is trying to evaluate the impact of skyrocketing inflation on UK households.

 

VIDEO LINK: https://www.youtube.com/watch?v=edjhMlo4pCo&t=15s 

As per the latest ONS data, average weekly earnings were up by 7% in the three months to March, as compared to the same period in the previous year. To some extent, this figure indicated the huge bonuses received by employees in the construction and financial services sectors. But according to the budget analysts, the UK is facing the worst cost-of-living crisis since records began in the 1950s, with consumer prices hitting their highest level since 1982.

Higher inflation impacts the real income of households and squeezes their budgets. Discretionary spending of consumers is hit with rising prices as their disposable income falls.

Let’s look at 3 UK consumer stocks that investors may keep an eye on in the current economic environment.

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Playtech plc (LON: PTEC)

The shares of the leading gambling software development were down by 0.82% at around 10:30 AM (GMT+1) on 25 May 2022, at GBX 542.00. In the last one year, the FTSE 250 company has provided its shareholders with a return of 19.19%, as of 25 May 2022. The company’s market cap stood at £1,683.43 million, as of 25 May 2022.

 Higher inflation impacts the real income of households and squeezes their budgets.   

© 2022 Kalkine Media®

Tesco plc (LON: TSCO)

The shares of the leading retailer of groceries and general merchandise were down by 0.23% at around 11:30 AM (GMT+1) on 25 May 2022, at GBX 257.70. In the last one year, the FTSE 100 company has provided its shareholders with a return of 13.97% as of 25 May 2022. The company’s market cap stands at £19,604.42 million as of 25 May 2022, and it is currently offering a dividend yield of 4.2% a year.

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Vivo Energy plc (LON: VVO)

The shares of the UK-based downstream petroleum firm, Vivo Energy plc, were up by 0.28% at around 10:30 AM (GMT+1) on 25 May 2022, at GBX 143.40. In the last one year, the FTSE 250 company has provided its shareholders with a return of 35.80% as of 25 May 2022. The company’s market cap was £1,811.73 million as of 25 May 2022, and it is currently offering a dividend yield of 3.2% a year.

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