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Uk Economic Growth Rate Slowing, Bcc Says

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http://www.bbc.co.uk/news/business-12156669

UK economic growth slowed in the fourth quarter of 2010, "raising concerns about a sustainable recovery", the British Chambers of Commerce (BCC) has said.

It estimates the economy expanded by 0.4%-0.5% in October-December, a slowdown on the latest official growth figure of 0.7% for July-September.

The BCC says the reduced output was a result of service sector weakness.

By contrast, it said manufacturing output was up strongly, led by exports.

The BCC concluded that while a new recession was "unlikely", risks remained.

David Frost, BCC director general, told the BBC: "The manufacturing sector is growing very strongly and is a star performer, but the service sector is undoubtedly acting as a drag.

"The manufacturing sector is being driven by exports, not least to the growth areas on the far side of the globe, but the service sector is suffering from a lack of confidence with consumer spending being reined in."

If only it hadn't snowed, we could have had 0.7% growth again against the backdrop of inflation at around 4% plus.

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http://www.bbc.co.uk/news/business-12156669

If only it hadn't snowed, we could have had 0.7% growth again against the backdrop of inflation at around 4% plus.

Chuff all to do with the snow, Over 50% UK public sector workers are worried about their jobs, many in private sector also...

Now your not going to ramp up the credit card/loans if you are worried about being unemployed 3 months down the line.

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Do they really think we are going to get sustained growth with the (much needed) government cuts, tax rises, rising unemployment, and rising inflation. We need to accept that we are in recession and accept that we will only see a real recovery when the economy has corrected itself. Just raise the rates to get this thing over with. The longer it is dragged out, the worse it will eventually be.

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Meh. The central banks have been reining in the credit bubble for a few years now, with a few more (or perhaps lots more) years of 'austerity', aka raiding the public purse.

Taxes up, IR's down, credit bubble burst, pick up the pieces a the end.

Now who exactly can 'afford' to pick up all the broken pieces???

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Surveys paint bleak picture for economy
David Milliken, 22:40, Tuesday 11 January 2011
LONDON (
Reuters
) - Economic growth likely slowed sharply around the turn of the year and retail sales fell in the crucial Christmas trading month of December, according to two surveys published on Tuesday.
The surveys make grim reading in what Prime Minister David Cameron says will be a difficult year. Sales tax has increased to 20 percent from 17.5 percent, while government spending cuts will start to bite this year.

Benign condiitons for a big drop in house prices this year folks. Bleak sums it up for the chances of the government getting HPI moving again anytie soon.

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Been looking at some of my customer stats tonight, in general, like for like sales for the period 1st to 11th (today) Jan over last 5 years is down 15% this year on last year so far.

This is despite things like copper going up £1k over the last 4 weeks (for some), general inflation increases, devalued £ and all are complaining phones are not ringing (as much).

Going to be an interesting year as some of my customers are still 25% down on their 2008 peaks which for some is a few million quid not to be sniffed at!

I'm expecting alot of SME's to go bust this year, putting more pressure on the Govt coffers as they get more "unexpected" borrowing as more people tap the working tax credits and other benefits.

Good post...interesting.

I've just written to my MP saying 'my Council rent is going up 7% this year and the next 5 years. Given that wages are static or falling please advise on how I'm supposed to pay'.

As you say, many will go onto benefits, my wife will give up her NHS job...no point in working just to pay CT and rent.

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http://uk.finance.yahoo.com/news/Pound-near-1-month-high-vs-reuters_molt-1552898962.html?x=0

16:04, Wednesday 12 January 2011
LONDON (Reuters) - Sterling rose towards a one-month high against the dollar on Wednesday as steady buying from Asian sovereign accounts helped to offset the impact from data which showed Britain's trade deficit widenening to record levels.
Britain's trade gap widened to 8.736 billion pounds in November (Berlin: NBXB.BE - news) from an upwardly revised 8.591 billion pounds in October. Imports of oil and aircraft pushed the
trade deficit to its biggest since monthly records began in January 1980
, contrasting with expectations for a modest narrowing.
"Those numbers took out a bit of steam from sterling, but overall it remains resilient," said Michael Hewson, markets analyst at CMC (CMC.BO - news) .

Good news for Sterling today with the trade gap widening to the worst since records began. Add the OP about slowing growth and mix in a bit of HPC and you see why the FOREX traders are seeing a lot of Sterling buying.

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  • 312 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%



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