Jump to content
House Price Crash Forum

Niesr: Economic Growth Has Stalled And Will Drop Further

Recommended Posts


Niesr, a leading think tank, has warned that Britain's economic growth slowed considerably over the summer and the rate of growth "will continue to decelerate" over coming months.

The National Institute of Economic and Social Research said British gross domestic product (GDP) in the three months to August slowed sharply to 0.7pc, compared to 1.3pc in the three months to July.

Niesr said in its latest report: "The pace of economic growth may have softened in the three months to August, but is still a robust rate for the UK," however it added: "Unfortunately, the rate of growth will continue to decelerate over the coming months."

The think tank predicted that the fragility of the economy recovery will lead the Bank of England to hold interest rates at their current record low of 0.5pc until at least next summer.

The British Chambers of Commerce (BCC) also called for the Bank's Monetary Policy Committee (MPC) to leave interest rates and the quantitative easing programme unchanged when they meet at noon today.

"Any early tightening in policy would worsen the pressures facing businesses, and could seriously damage the economy at this stage of the recovery," said David Kern, the BCC's chief economist.

"British business will find it very difficult to drive the recovery without a prolonged period of low interest rates. Any consideration of raising interest rates should be dismissed until the middle of 2011 at the earliest."

However there was some good economic news, with British factories recording their strongest year of growth in more than 15 years.

The Office for National Statistics (ONS) said manufacturing output rose by 0.3pc for the third month running, and was up 4.9pc compared to July last year - the strongest year-on-year growth since December 1994.

More at the link.

Won't someone save the recovery.

Clearly we need more printy printy from the BoE, if we don't this recovery will collapse.

Link to post
Share on other sites


More at the link.

Won't someone save the recovery.

Clearly we need more printy printy from the BoE, if we don't this recovery will collapse.

clearly, rising housing costs make our workers more competitive. They must be the drivers of the economy, clearly because, if they werent wealthy, they couldnt afford the loans to buy the expensive houses in the first place.

As Houses (according to the Halifax) are more expensive, then clearly, the report is nonsense.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.