Realistbear Posted July 6, 2010 Share Posted July 6, 2010 http://www.telegraph.co.uk/finance/economics/7873311/UK-economic-recovery-may-have-peaked-as-services-sector-loses-steam.html UK economic recovery may have peaked as services sector loses steam Growth in Britain's dominant services sector lost momentum in June and confidence plummeted the most on record as businesses feared the implications of Government's austerity measures. By Angela Monaghan Published: 5:30AM BST 06 Jul 2010 Activity in the sector - which accounts for three-quarters of the UK economy - grew at the slowest pace in almost a year according to the Markit/CIPS purchasing managers' index (PMI). Looks like the sham of a recovery is about to come to an obvious end. With our addiction to HPI and the huge service sector that surrounds it going down we have little left to recover with. This data should , however, boost stocks and Sterling. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted July 6, 2010 Author Share Posted July 6, 2010 FTSE 100 4879.44+1.16% Lots of good news out today to boost confidence. Let's see, what might it be...................... Seriously though folks, the days ahead cannot be good for stocks and the economy in general. With the recovery finished in the US and the same hitting us as the OP suggests it can't be THAT long before the housing market starts to see some trailing off in demand, at least at current price levels. Unless, of course, the government continue to subsidise it with low IR and payoffs to the banks to stall foreclosure proceedings. Quote Link to comment Share on other sites More sharing options...
flapjack Posted July 6, 2010 Share Posted July 6, 2010 Mr Smith said the fall was in response to "the Government's austere emergency Budget, with concern expressed that the fiscal tightening could push the country back into recession". Now that we begin to see the real intentions of the Tories - people are beginning to realise what it actually means for them. The Govn just announced they were cutting £5bn of capital spending by axeing the schools programme - thats a huge amount of work for the building firms. But hardly a thing in the MSM about this. Typically not a word in the Daily Mail - staggering. Many of these projects are in the £20-30m range - so a years work for what 50 blokes? Thats a huge loss for some firms. Plus I notice somewhere that the service firms that work for the public sector - like Connaught - are downgrading their forecasts and issueing profit warnings. There a lot of private sector firms that rely on publuc sector spending - if that all goes then we will go into double dip for sure. A lot of MDs scratching thier heads today! Where else will they get work from. The way things are going - it seems that the cure will be worse than the disease! Quote Link to comment Share on other sites More sharing options...
hedgefunded Posted July 6, 2010 Share Posted July 6, 2010 A lot of MDs scratching thier heads today! Where else will they get work from. The way things are going - it seems that the cure will be worse than the disease! Yes, but the disease would have killed the patient. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted July 6, 2010 Share Posted July 6, 2010 'Looses' momentum? Is RealistBear actually RealistBull in disguise??? Quote Link to comment Share on other sites More sharing options...
Realistbear Posted July 6, 2010 Author Share Posted July 6, 2010 'Looses' momentum? Is RealistBear actually RealistBull in disguise??? Someone suggested I try going bull for awhile as the crash can't start until the last bear has turned bullish. Trouble is, I can't bring myself to believe that the news is going to be anything but bad in the days ahead. The good news has all been based on a grand illusion. I think DC got it right when he said we cannot expect to live at the standards we have become used to without working for it. Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted July 6, 2010 Share Posted July 6, 2010 Yes, but the disease would have killed the patient. Of course if the cure kills the patient, the end result is the same - dead patient. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted July 6, 2010 Share Posted July 6, 2010 'Looses' momentum? Is RealistBear actually RealistBull in disguise??? Someone suggested I try going bull for awhile as the crash can't start until the last bear has turned bullish. Trouble is, I can't bring myself to believe that the news is going to be anything but bad in the days ahead. The good news has all been based on a grand illusion. I think DC got it right when he said we cannot expect to live at the standards we have become used to without working for it. Dorkins has it right - "Looses" momentum - releases the pent-up energy which will turbo-charge the economeh! "Loses" momentum - quite a different matter. [/pedant] Quote Link to comment Share on other sites More sharing options...
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