Double-Dip Talk Returns As Uk Economic Growth Slows

[interestrateripoff]

http://www.telegraph.co.uk/finance/economics/8277318/Double-dip-talk-returns-as-UK-economic-growth-slows.html

Almost 148,000 companies are in difficulties before the the full impact of spending cuts and tax rises has even been felt, according to a report from Begbies Traynor, the insolvency specialist.

Begbies, which monitors the warning signs of company distress, found the first year-on-year increase in companies experiencing 'significant' or 'critical' financial problems since the beginning of 2009.

The report comes ahead of official data out tomorrow which is expected to confirm that the UK's gross domestic product (GDP) grew by as little as 0.2pc in the final three months of last year, down from 0.7pc and 1.1pc in the previous quarters. The release of the data will mark the first anniversary of Britain being officially diagnosed as out of recession.

The 147,836 firms that experienced significant or critical financial problems in the last three months of 2010 represent a 4pc increase on the same period in 2009 – and a 20pc increase on the third quarter of last year.

While the slow GDP growth and increased distress in the private sector may have been influenced by exceptional seasonal factors such as snow deterring shoppers at the end of last year, fears about unemployment, inflation and this month's VAT rise are increasing the sense of unease about the economic outlook. It is thought that the looming impact of spending cuts and tax increases could bring GDP growth down to as little as 0.1pc later in the year.

Wow this is unexpected, after all of those articles last year about how a double dip was unlikely and now all of a sudden we've got the press being bearish warning of a double dip. I mean seriously who could have predicted this!!!

Viva recovery.

[Realistbear]

100% certain, guaranteed.

The effects of QE and artificially low IR are wearing off. The piper still waits payment for the Brown years of debt backed HPI.

[RichM]

Life support economy. And on IRs of .5%!

[Bloo Loo]

I need some QE...never got any last time.

[@contradevian]

100% certain, guaranteed.

The effects of QE and artificially low IR are wearing off. The piper still waits payment for the Brown years of debt backed HPI.

Sadly the thick sheeple won't see it that way and will blame Cameroon and the ConDems. Even though New Labour were still blaming Thatcher when they were in office!

[Patfig]

100% certain, guaranteed.

The effects of QE and artificially low IR are wearing off. The piper still waits payment for the Brown years of debt backed HPI.

It's hangover time

[FrozenOut]

Isn't a double dip a characteristic of a recession anyway? I mean, you get the intial dip followed by the attempts to stop it then followed by the resumption of the downwards path.

Have we ever NOT had a double dip? Surely the way to avoid a double dip is to accept the initial dip when it happens and let the correction play out?

[interestrateripoff]

Isn't a double dip a characteristic of a recession anyway? I mean, you get the intial dip followed by the attempts to stop it then followed by the resumption of the downwards path.

Have we ever NOT had a double dip? Surely the way to avoid a double dip is to accept the initial dip when it happens and let the correction play out?

Not very popular with the voters and politicians like to feel invincible and that they can beat the odds.

[rantnrave]

The report comes ahead of official data out tomorrow which is expected to confirm that the UK's gross domestic product (GDP) grew by as little as 0.2pc in the final three months of last year

Sounds like something else that is going to be blamed on the snow...

If things keep tanking like this (remembering that for most, falling HPs are a sign of economic problems) are we in for a govt u-turn?

[GeordieAndy]

Ha ha love this in the comments of this article to news that we are in danger of going into a double dip:

Let's get this straight, it's not a double dip, it's a single dip.

It's a single dip with a bloody great big pile of printed money on the slope to make it look like a recovery.

[rantnrave]

Ha ha love this in the comments of this article to news that we are in danger of going into a double dip:

Freaky - moments ago I just copied that same comment and posted it on the HPC article blog.

[GeordieAndy]

Freaky - moments ago I just copied that same comment and posted it on the HPC article blog.

I didn't see your post I promise!

I also don't bother with the comments on the article blog as it's such a pain (mods link your database up at the back end)

[rantnrave]

I didn't see your post I promise!

I also don't bother with the comments on the article blog as it's such a pain (mods link your database up at the back end)

Agree - there are some very valuable comments made over there which rarely see the light of day here (and vice-versa). Very few folk - just myself and the General from what I can see - actually post on both. It is bizarre that there are two totally different threads on different sections of the site discussing the same article...?

Edited January 24, 2011 by rantnrave

[The Masked Tulip]

I have been saying this since May 5th - when is the Coalition actually going to bring out some business incentives for SMEs to be set up or expand.

I cannot think of one single thing that the Coalition has done to help businesses in the UK. Not one.

[Patfig]

I have been saying this since May 5th - when is the Coalition actually going to bring out some business incentives for SMEs to be set up or expand.

I cannot think of one single thing that the Coalition has done to help businesses in the UK. Not one.

We are a small business and to be hoenst no one gives a sh1t.

If you make it you make it, if you dont you dont.

[The Pale Rider]

My employer has just agreed a joint venture with a large Chinese company and will enjoy access to cheaper interest rates and access to the chinese market,hopefully that will keep us afloat.

[mfp123]

I have been saying this since May 5th - when is the Coalition actually going to bring out some business incentives for SMEs to be set up or expand.

I cannot think of one single thing that the Coalition has done to help businesses in the UK. Not one.

this is very true.

its the SME's that will get this economy going again, create supply, create demand, create new jobs.

it make me laugh when you see in the press about how the government job cuts will adversely affect the economy.

public sector jobs are a tax on the economy. its using private sector taxes to pay for public sector jobs.

people sometime forget that a cut in public sector jobs equals a cut in taxes because we no longer have to pay for public servants to be in work.

once SME's get going , they will create the jobs that will fill the void left by the job cuts but in new economic areas that will make the economy more dynamic.

any man and his dog can tax 20 people 1k and create a brand new 20k public sector job. thats not a job. its subsidence and a drain on resources.

the move to more SME's is a rearrangement of the workforce to make it more efficient.

Edited January 24, 2011 by mfp123

[Alan B'Stard MP]

I cannot think of one single thing that the Coalition has done to help businesses in the UK. Not one.

Come on - they're giving them a larger labour pool to shoot at.

[rantnrave]

I have been saying this since May 5th - when is the Coalition actually going to bring out some business incentives for SMEs to be set up or expand.

I cannot think of one single thing that the Coalition has done to help businesses in the UK. Not one.

They have at least put the shovels down and stopped digging the hole any deeper.