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Uk Economy Powers Ahead By 0.7%

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Accelerating GDP growth rate further fuels talk of an interest rate rise despite a flat construction sector and a 0.3% dip in manufacturing

Britain’s economic growth bounced back in the second quarter of the year, according to official data on Tuesday, fuelling the debate about the first rise in interest rates since the financial crisis.

There were also signs that living standards are returning to their pre-crisis levels as the Office for National Statistics said that GDP per head was now “broadly equal” to the first quarter of 2008, before the economic crisis drove the UK into recession.

All the latest economic and financial news, including new UK growth figures showing how the economy fared in the last quarter
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After a slowdown in the first three months of the year to 0.4%, the first estimate for second quarter growth stood at 0.7%, in line with City expectations, but just off the pace of growth recorded at the end of 2014.

The growth was fuelled by the service sector, which will stoke fears that the recovery is not spreading to all sectors of the economy. Manufacturing, one of the sectors targeted by the government, fell by 0.3%. [more at link]


http://www.theguardian.com/business/2015/jul/28/uk-economy-gdp-growth-07?CMP=Share_AndroidApp_Facebook

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I would estimate that the economy was flat.....people maybe feeling slightly better off due to slightly below level food and fuel prices.....repaying debt doesn't stimulate growth....now is the time to get out of the red and into the black....learn to do things differently, more productively to help create prosperity. ;)

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Uk Economy DEBT Powers Ahead By 0.7%

+1

Housing Boom 2.0 isn't a recovery but the sheeple lap it up anyway. I told a Maths teacher if Osbourne didn't pump the housing market post election we'd go into recession.

She had a blank look and seemed puzzled :P

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Economic growth jumps to 0.7% as wealth per person finally returns to pre-crash levels

2AE6C23800000578-0-image-m-4_14380738309

The service sector is fuelling most of the recovery, although the mining industry reported its strongest growth since the 1980s, the Office for National Statistics said.

The Wail is on it!

That household wealth isnt based on house prices is it ?

:lol::lol::lol::lol:

This country is ****ed

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Economic growth jumps to 0.7% as wealth per person finally returns to pre-crash levels

2AE6C23800000578-0-image-m-4_14380738309

The service sector is fuelling most of the recovery, although the mining industry reported its strongest growth since the 1980s, the Office for National Statistics said.

The Wail is on it!

That household wealth isnt based on house prices is it ?

:lol::lol::lol::lol:

This country is ****ed

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New tungsten - copper mine in Devon.

Also new Potash mines in Yorkshire?

Don't get me started about Sirius.

Its an AIM listed mining company?

Just one of those should fill you with fear and dread for your investment.

Both - ????

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New tungsten - copper mine in Devon.

Also new Potash mines in Yorkshire?

A hell of a lot of money being spent on the tungsten mine a mate has just finished down there instaling the ball mills/ screens, isn't it Chinese owned though or are they just supplying the kit

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Anecdotally British Manufactured products seem to be finding themselves onto the shelves here despite the exchange rate working against Sterling.

Last weekend's contrib to the UK economy included:

2 Supermarket own brand deodorant sticks

2 packs of Ryvita

1 jar of Marmite

several packets of Mr Fothergill's seeds

24 cans of Green King IPA

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That household wealth isnt based on house prices is it ?

:lol::lol::lol::lol:

This country is ****ed

It's indeed surprising that hoousehold wealth is the same as 2007. We have had debt deleveraging so that it is nominally the same as eight years ago at 1.5 trillion and house prices too are the same. In other words we have otherwise not put one penny aside in savings in eight years, just consumed our entire incomes.

If this figure is index linked then i suppose there has been some saving going on to make up for the dead money on everybody's balance sheets, their house, which has shown zero gain. Renters aside, of course.

Edited by crashmonitor

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http://www.theguardian.com/business/live/2015/jul/28/business-live-uk-gdp-growth-figures-osborne-greece-live

The 0.3% decline in manufacturing output in the last quarter has alarmed Britain’s trades unions.

TUC General Secretary Frances O’Grady said:

“The government’s economic plan is not delivering what was promised. We were told there would be a march of the makers, but instead manufacturing continues to decline. And while there is a desperate need for affordable homes, construction output remains in the doldrums.

“We need a new plan for productivity and growth, because the current one is not delivering across the whole economy – a plan with stronger investment in infrastructure, innovation and skills. But the cuts the Chancellor is planning will damage demand and run the risk of reducing future growth.”

Andrew Sentance, senior economic adviser at PwC, is also struck by how private sector service firms are leading the recovery, thanks to consumer spending.

Activity in retailing, hotels, restaurants and related services is 4.5% up on a year ago and the output of transport services has risen by 3.7%. Business and financial service growth in the past year is also over 3%.

Manufacturing output and public services are much more sluggish, with output growing by just 0.5% or so over the past year

Given all the debt the UK govt is creating where the feck is it going if it's only creating a 0.5% increase?

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http://www.theguardian.com/business/live/2015/jul/28/business-live-uk-gdp-growth-figures-osborne-greece-live

Given all the debt the UK govt is creating where the feck is it going if it's only creating a 0.5% increase?

Debt needs to be much higher. Investing in infrastructure (500,000 council houses for instance), training & skills development.

Osborne truly is rubbish. his fical obsession is killing UK apart from London/services which presumably is his mandate.

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It's been spent servicing existing debt.

It's been spent servicing a health, pensions and welfare budget that assumed GDP would be about 20% higher by now. Brown bigged these up on the assumption of a Goldilocks economy forever.

Don't agree that by borrowing even more we could have propped up GDP and debt would have been eventually controlled.

The fact that we grew the fastest in Europe during the Conservatives term 9and increased borrowing the most) tends to suggest they borrowed to the limit as it was.

Edited by crashmonitor

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We do need to invest in infrastructure, building and manufacturing and providing our own future energy supply such as nuclear.....services could be growing because we are losing vital skills we had in the past doing things for ourselves rather than paying others to do it for us....child minding for example, what about eating healthy home cooked food at home instead of living on warm up convenience meals, take-aways and coffees.......doing more paid hours at work not all of them productively or paid well means less free time to help ourselves and families working to create our own micro community growth and productivity. ;)

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It's been spent servicing a health, pensions and welfare budget that assumed GDP would be about 20% higher by now. Brown bigged these up on the assumption of a Goldilocks economy forever.

Don't agree that by borrowing even more we could have propped up GDP and debt would have been eventually controlled.

The fact that we grew the fastest in Europe during the Conservatives term 9and increased borrowing the most) tends to suggest they borrowed to the limit as it was.

If that were true then the UK economy would have been growing at least as fast as the national debt i.e .7 % p.a. not the sub 2% witnessed since 2008. Clearly, much of this additional borrowing has not been added to GDP, being used instead to retire or replace existing debt stock.

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