Uk back in recession

It's official. Britain has had two successive quarters of negative growth and so is in a double dip recession.

The dip in activity is small but massively significant. With the government up to its eyeballs in the phone-hacking scandal and with local elections looming, the timing could hardly have been worse for David Cameron and george osborne.

The chancellor was putting a brave face on it, coming on all Margaret Thatcher with his "this government's not for turning" line. Yet this is a terrible blow for the coalition, which now stands accused of over-cooking austerity and thus killing off the tentative recovery that was under way when Labour left office almost two years ago.

There is more to it than that, clearly. Osborne inherited an economy with deep structural weaknesses and the biggest peacetime budget deficit in the UK's history.

Even so Labour will seize the moment with gusto. The shadow chancellor, Ed Balls, has been arguing consistently since he got the job 15 months ago that the economy was too weak to cope with the mix of tax increases and spending cuts that Osborne served up. Even though the bulk of the spending restraint has yet to take place, that now looks like a reasonable assessment.

Slow growth makes it harder for the government to hit its deficit-reduction targets and may well result in the UK having its credit-rating downgraded.

That would be a bitter blow for Osborne, since his entire economic and political strategy has relied on the UK remaining in the dwindling club of nations with a prized AAA rating.

Double-dip recessions are extremely rare in the UK. It is quite common for the economy to falter during a recovery with one quarter of negative activity but you have to go back to the mid-1970s, when the first oil shock of 1973-74 was followed by stagflation in 1975, to find a genuine double-dip downturn.

In the past, even during the 1930s, recoveries have been well under way by now. This time, despite the massive stimulus that has been chucked at it, four years into the deepest depression of the post-war era Britain is going backwards.

Output is more than 4% below its peak in early 2008, living standards are falling and there is no sign whatsoever of the much-heralded rebalancing of the economy.

City analysts, once again caught on the hop by the dismal growth figures, will no doubt make the point that the main reason behind the 0.2% contraction in the first quarter was the performance of the construction sector, where the figures are notoriously prone to revision.

It could well be that fresh data over the coming months will see growth revised up and no double-dip recession after all. But this GDP announcement will be big news; any positive changes later will not be. The damage has been done.

Car insurance from eCar Insurance

Be the first to comment - What do you think?
Posted by admin - April 26, 2012 at 16:33

Categories: uk Recession   Tags: ,

UK inflation rate rise

The UK Consumer Prices Index (CPI) annual inflation rate rose to 3.3% in November, up from 3.2% in October, official figures show.

It followed record price rises for the October to November period in food, clothing and furniture, the Office for National Statistics (ONS) said.

CPI inflation remains well above the government target of 2%.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - rose to 4.7% from 4.5%.

Food and non-alcoholic drink prices were up by 1.6% between October and November, compared with a rise of 0.6% a year ago, the ONS said.

Clothing prices also rose by a record amount - of 2% - between the two months, with the biggest price rises found in men's outerwear.

Furniture, household equipment and maintenance also showed a record price rise of 1.6% between October and November.

The Bank of England expects inflation to remain high into next year, pushed higher by rises in VAT from 17.5% to 20% at the start of the year.

Some believe this will provide a screen that will allow retailers to put through more extensive price increases.

A report released on Tuesday by KPMG said that 60% of retailers and consumer product manufacturers planned to increase their prices over and above the VAT rise.

A British Retail Consortium spokesman, however, said the report was "nonsense".

The inflation rate has now remained above the 2% target by one percentage point or more for 12 months, and the Bank of England's governor, Mervyn King, has had to write four letters to the chancellor this year.

But with the new government having announced the biggest round of budget cuts since World War II, the Bank still expects the resulting slowdown in spending to bring inflation down over the next two years.

Commenting on the inflation figures, BNP Paribas economist Alan Clarke, said: "It's a disappointing number and it's only going to get worse in the next couple of months."

"Next month is utility bills, the month after that is VAT, it's all one-way traffic at the moment."


Be the first to comment - What do you think?
Posted by admin - December 14, 2010 at 12:24

Categories: Uncategorized   Tags: ,

Global economy slowing but recession unlikely says OECD

The global economic recovery is slowing faster than forecast, but a return to recession is unlikely, a leading global economic group has said.

The Organisation for Economic Co-operation and Development (OECD) said the slowdown had been more "pronounced than anticipated".

As a result, it lowered its growth forecast for 2010 for the G7 leading economies to 1.5%, down from 1.75%.

It added the economic outlook was characterised by "great uncertainty".

"The uncertainty is caused by a combination of factors, but it is unlikely that we are heading into another downturn," said the OECD's chief economist Pier Carlo Padoan. Read more...

Be the first to comment - What do you think?
Posted by admin - September 10, 2010 at 16:39

Categories: Global Recession   Tags: , ,

Interest rates may hit 8% by 2012

An influential think tank has warned that interest rates may have to rise to 8% to combat rampant inflation.

The warning comes from the Policy Exchange, whose chief economist, Andrew Lilico, argues an economic recovery will unleash a wave of money.

Doctor Lilico believes a double-dip recession is likely, which would then be followed by a boom. Read more...

Be the first to comment - What do you think?
Posted by admin - August 22, 2010 at 12:31

Categories: The future   Tags: , ,

Recession: What affect on the media industry

Has the recession affected you within the media industry?

I’m a few months away from completing my TV and Film production degree as part of Bournemouth University and for one of my last assignments I have to write a dissertation. The title of my dissertation is ‘Did the recent recession in the United Kingdom affect income and budgets in TV, Film and Video productions?’

If you are in the media industry and have an opinion about the recession and how it’s affected you or others then I would like to know about it? Whilst writing your comments it would benefit me if you could point me to websites that could back your statements up for evidence in my dissertation

Thank you for your time,


Be the first to comment - What do you think?
Posted by Bruce_h_gill - May 11, 2010 at 14:54

Categories: uk Recession   Tags: , ,

UK economy to stay in doldrums

Low growth

The UK economy will remain stuck in the doldrums this year with growth of 1% or less predicted in 2010, a leading forecaster has warned. The Ernst & Young ITEM Club, which uses the Treasury's economic model for its forecasts, said the immediate prospects for the UK were "dismal".

An export-led recovery was unlikely to emerge until 2011 and consumer spending was too weak for a recovery, it said It comes in a key week for economic news as the election battle gains pace.

Public finance figures on Thursday will confirm how much the government borrowed in the financial year that has just ended. And on Friday first quarter figures for overall economic output will be published. Read more...

1 comment - What do you think?
Posted by admin - April 20, 2010 at 08:59

Categories: uk Recession   Tags: , , ,

David Cameron: Latest news

ELECTION 2010: Tory leader David Cameron visits Prestatyn
FRESH from his appearance on the first-ever televised leaders debate David Cameron visited Prestatyns to launch the Welsh Conservative Party’s manifesto.

Read more on The North Wales Chronicle

General election 2010: David Cameron appeals to pensioners
David Cameron, the Conservative leader, has accused Labour of 'sidelining' elderly voters and promised that older people would play a full part in society under a Tory government.

Read more on Daily Telegraph

General Election 2010: David Cameron has a week to show what he's made of
Telegraph View: To fight off Clegg, Cameron must take this campaign by the scruff of the neck.

Read more on Daily Telegraph

General Election 2010: David Cameron berated by unhappy voter
David Cameron faced an embarrassing confrontation with an unhappy constituent in front of television cameras.

Read more on Daily Telegraph

David Cameron: Britain's Next Prime Minister?
Britain's Conservative leader, David Cameron, is ahead in the race for 10 Downing Street. But the electorate still isn't sure who he is or what he stands for

Read more on Time Magazine

Be the first to comment - What do you think?
Posted by admin - April 19, 2010 at 14:40

Categories: The future   Tags: , , , , ,

General election 2010: Nick Clegg defends party stance on Europe

General election: Nick Clegg says poll points to end of 'tired' politics
Voters are starting to believe that the May 6 General Election may produce a break from the ''tired choices'' offered by the two parties which have dominated British politics, Liberal Democrat leader Nick Clegg said.

Read more on Daily Telegraph

General Election 2010: Vote Nick Clegg, get Gordon Brown, say Tories:
The Tories claim Gordon Brown could lose the election but remain Prime Minister for five more years thanks to a Lib Dem surge inspired by Nick Clegg's TV debate triumph.

Read more on Daily Mail

Election 2010: how Nick Clegg changed the game overnight for the Liberal Democrats
Nick Clegg's performance last Thursday night transformed his party's chances in the general election – and poses a serious threat to Tory hopes of victory As he was driven in a Special Branch car to Manchester at 6.30pm on Thursday evening, the last phone call Nick Clegg made before arriving at the ITV studios was to his three young boys. There was no mention during the conversation of the big ...

Read more on Guardian Unlimited

General Election 2010: Louis Theroux claims he was Nick Clegg's 'fag' at public school
Louis Theroux, the documentary-maker, has claimed he used to wake Nick Clegg up in the morning when they were at boarding school together.

Read more on Daily Telegraph

General election 2010: Nick Clegg defends party stance on Europe
Nick Clegg has defended his party's pro-European stance after being accused of trying to take Britain into a "super-state".

Read more on Daily Telegraph

Be the first to comment - What do you think?
Posted by admin - April 19, 2010 at 14:29

Categories: The future   Tags: , , , , , , , ,

Gordon Brown woos Liberal Democrats with electoral reform promise

Gordon Brown insists election is 'open' despite polls
GORDON Brown was set to tell supporters today that the general election is "wide open" in the wake of the televised leaders' debate.

Read more on The Scotsman

General Election 2010: Vote Nick Clegg, get Gordon Brown, say Tories:
The leader rejected a warning from David Cameron that a switch to the resurgent Liberal Democrats would be a 'vote Clegg, get Brown' scenario.

Read more on Daily Mail

General Election 2010: Gordon Brown vows a fight to the end
Gordon Brown tells Patrick Hennessy, Political Editor, how Labour is fighting to win 'Middle Britain' during the campaign.

Read more on Daily Telegraph

U.K. Election: 3rd place could keep Brown in power
Due to the mechanics of Britain’s voting system, a third place finish by Labour could keep incumbent Prime Minister Gordon Brown in power.

Read more on Market Watch

Gordon Brown woos Liberal Democrats with electoral reform promise
Gordon Brown makes it clear he would be able to work with Nick Clegg to try and secure electoral reform.

Read more on Daily Telegraph

Be the first to comment - What do you think?
Posted by admin - April 19, 2010 at 14:17

Categories: The future   Tags: , , , , , , ,


Recession books

Read about and study the recession with recession books.

The internet is a mine of information on the recession, but it can be a bit overpowering when studying or researching a certain angle on the recession.

Many books have been written covering many aspects of the recession, such as "how to get a job during a recession" or "profiting from property during a recession", even "sex in the recession" may interest someone.

Browse our selected recession books.

Be the first to comment - What do you think?
Posted by admin - March 22, 2010 at 18:56

Categories: Uncategorized   Tags: , , ,

Next Page »

Get Adobe Flash playerPlugin by wordpress themes