UK services sector under pressure
A report by the Confederation of British industry (CBI) has dealt a bitter blow to those who had hoped that the UK economy was over the worst. Despite the fact that service sector sales and profitability were strong in the final quarter of 2009, and anticipated to grow in the first quarter of 2010, we actually saw a reduction in sales and over profitability. This is very much at odds with the beliefs of those in the services sector at the last CBI survey.
This has cast further doubt on the strength of the UK economic recovery and places more pressure on David Cameron and his coalition government to try and pump confidence and enthusiasm back into the UK economy. The services sector in the UK, after the ongoing demise of the manufacturing industry, is by far and away the engine room of the UK economy. It will prove a pivotal sector in the eventual recovery of the UK economy because ultimately it is a reflection of the confidence of consumers and the confidence of businesses.
It would appear that consumers are still concerned about the short to medium-term outlook for employment, an increase in taxes and a reduction in public-sector investment. The bumpy ride to an eventually UK economic recovery continues!
Share this..
Related stories
UK government figures show 562,000 job vacancies
As the unemployment rate in the UK continues to push higher and higher there is some concern about the quality and accuracy of the figures released into the public domain. It would appear, according to government figures, there are currently 562,000 job vacancies in the UK and while the number has fallen by 49,000 in the last quarter and 118,000 over the last 12 months this is still a substantial...
Read MoreIs inflation really a problem?
As we see UK inflation rise to 3.4% in March it is easy to assume that inflation is set to become a major problem for the UK government and the UK economy. However, the vast majority of the increase in March has been attributed to a rise in the cost of fuel and the knock-on effect this has to the cost of food, goods and services. So what can the UK government do to reduce the pressure on inflation...
Read MoreInterest Rates Are Stuck At 5%
Today has been a disaster for the UK economy, the government, the Bank of England and above all the UK consumer. As inflation bounds ahead to a frightening 4.4% the likelihood of interest rates falling in the short term is as remote as it ever has been. A fall in interest rates would assist the economy but fuel inflation, but a rise in rates would combat inflation but kill the economy.
UK car parts manufacturer files for bankruptcy
In a sign of the times it has been confirmed that the UK subsidiary of Visteon Corporation, which was formerly part of the Ford group, has today filed for bankruptcy with the potential loss of 600 jobs in the UK. The business has three car plants in Basildon, Belfast and Enfield making a range of components for the car industry. However, business has been bleak of late and the owners have today ta...
Read MoreChinese economic slowdown threat to worldwide revival
Despite the fact that the Chinese economy has shown signs of revival over the last few weeks there is growing concern that an economic slowdown could just around the corner and could potentially unravel the worldwide recovery currently underway. The World Economic Forum believes that there is a 20% chance of a serious economic slowdown in China in the short to medium term which could lead to econo...
Read More