Are the indicators pointing towards a double dip recession?
Over the last few days a number of parties have expressed their concern about the short-term direction of the UK economy and a growing number of executives are worried about a possible double dip recession. This comes at a time when the UK government is looking to push through massive public-sector budgets spending cuts which will at the very least cause a drag on the UK economic recovery. So are we heading towards a double dip recession?
Indicators do not suggest there will be a double dip recession in the short to medium term but there is now a real danger of executives around the UK talking themselves into further economic turmoil. If we see investment cuts in the private sector then these reductions could have a knock on effect and very soon we could be seeing companies withdrawing their funding and marketing budgets from the business arena and waiting to see which direction the UK economy moves in.
It is highly likely that companies will be monitoring UK economic indicators very closely in the short to medium term and at the first sign of trouble we could see a significant falloff in investment in the UK. So far the indicators are not showing a return to recession but as we have seen in the past these figures can and do change very quickly!
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