So the UK economy is recovering nicely.
Its growth is one of the highest in the Western world.
Business confidence is at its highest for ten years according to a survey by the Institute of Chartered Accountants.
This is excellent news for the country and, of course, for the Government and Chancellor George Osborne. However, the latter might come under pressure to share some of this recovery wealth with taxpayers, many of whom will not recognise this apparent good news story.
The third quarter showed growth at 0.8% in the UK, and Christmas spending, good demand in construction, and increasing business investment could produce a fourth quarter figure of 1.3%. Time will tell.
In the meantime, heads down, let's keep the growth going.
Showing posts with label economic growth. Show all posts
Showing posts with label economic growth. Show all posts
Wednesday, 6 November 2013
Monday, 20 December 2010
CBI downgrades recovery forecast
The CBI has reduced its forecast for economic growth for the first quarter of 2011. The previous forecast was 0.3%, but this has been downgraded to 0.2%, with inflation and public sector job cuts impacting the recovery.
However, the CBI did stress that it did not expect the economy to lurch back into recession, and its forecast for the second quarter is a growth of 0.4%.
Consumer spending is likely to be hit by higher energy bills and the increase in VAT to 20%.
Chief economic adviser at the CBI, Ian McCafferty, said: “Quarterly growth at the start of 2011 is likely to be very sluggish, although we do expect the recovery itself to stay on track.
"What is striking is how little we see growth accelerating in 2012. Typically, by the third year of a recovery, growth would be more robust than we expect for either 2011 or 2012."
I can’t see that it’s surprising myself. The recession was pretty bad, but it has long gone – yet, people still refer to us being in a recession. The mood is still bleak and angry, and I can easily see that this will keep economic growth sluggish.
All this is in spite of economic growth of 0.8% between July and September. It was good news, but did little to lighten the mood. It’s going to be a long, hard climb. I would have thought anyone could see that.
However, the CBI did stress that it did not expect the economy to lurch back into recession, and its forecast for the second quarter is a growth of 0.4%.
Consumer spending is likely to be hit by higher energy bills and the increase in VAT to 20%.
Chief economic adviser at the CBI, Ian McCafferty, said: “Quarterly growth at the start of 2011 is likely to be very sluggish, although we do expect the recovery itself to stay on track.
"What is striking is how little we see growth accelerating in 2012. Typically, by the third year of a recovery, growth would be more robust than we expect for either 2011 or 2012."
I can’t see that it’s surprising myself. The recession was pretty bad, but it has long gone – yet, people still refer to us being in a recession. The mood is still bleak and angry, and I can easily see that this will keep economic growth sluggish.
All this is in spite of economic growth of 0.8% between July and September. It was good news, but did little to lighten the mood. It’s going to be a long, hard climb. I would have thought anyone could see that.
Thursday, 3 December 2009
UK services sector grows to boost hopes of end to recession
Figures from the Chartered Institute of Purchasing and Supply (CIPS) released today show that the services sector in Britain grew again in November, as it did in October.
The continuing growth is good news for the economy as a whole as the services sector accounts for nearly three-quarters of the total economy. For this reason the services sector is often called the “engine room of the economy”.
The business activity index of CIPS was at 56.6, slightly down from the October peak of 56.9, and companies reported that new work coming in was at its fastest rate for over two years. British businesses are reporting confidence levels at their highest for two years as well.
CIPS’s chief executive David Noble said: “The services sector is continuing to grow but at a steady rather than spectacular rate.
“In contrast to the more fragile construction and manufacturing sectors, the UK services industry has shown growth for seven months now, which looked very unlikely in the dark days at the start of the year.”
The figures will be welcomed by Chancellor Alistair Darling who will deliver his Pre-Budget Report next Wednesday.
Although Britain is the only major economy still in recession, it is fairly clear that it will emerge from that status come the next quarterly figures in January. Nevertheless, it has been the longest recession since 1945.
The continuing growth is good news for the economy as a whole as the services sector accounts for nearly three-quarters of the total economy. For this reason the services sector is often called the “engine room of the economy”.
The business activity index of CIPS was at 56.6, slightly down from the October peak of 56.9, and companies reported that new work coming in was at its fastest rate for over two years. British businesses are reporting confidence levels at their highest for two years as well.
CIPS’s chief executive David Noble said: “The services sector is continuing to grow but at a steady rather than spectacular rate.
“In contrast to the more fragile construction and manufacturing sectors, the UK services industry has shown growth for seven months now, which looked very unlikely in the dark days at the start of the year.”
The figures will be welcomed by Chancellor Alistair Darling who will deliver his Pre-Budget Report next Wednesday.
Although Britain is the only major economy still in recession, it is fairly clear that it will emerge from that status come the next quarterly figures in January. Nevertheless, it has been the longest recession since 1945.
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