Slide in US economy starts to slow
The second quarter of 2009 saw a reduction of 1% in the gross domestic product of the US economy which is less than the 1.5% fall which many analysts had forecast. Even though this means that the US economy has fallen in four consecutive quarters, there are signs that the slowdown may be coming to an end.
However, the picture with regards to consumer spending is a little more complicated with the 0.6% rise in the first quarter of 2009 reversed into a 1.2% decline in the second quarter of 2009. While there is still some way to go before we can claim that the US recession is over there is no doubt that the bellwether of the worldwide economy is starting to show signs of improvement although consumer spending is a vital element of any recovery phase.
In an unfortunate twist, the ratings agency Fitch has again criticised the UK government for its excessive use of debt over the recessionary period amid claims that the UK economy is the most exposed to further downside because of the runaway budget deficit. Even though the Triple-A rating is still in place, and is unlikely to change in the short term, finances the UK have never been weaker in recent times.
Share this..
Related stories
Tory party fightback with tax break plans
After initially seeming to ridicule Gordon Brown's rumoured £15 billion tax cuts it seems as though the Tory party have a programme of tax breaks of their own to announce over the next few days. However, it appears as though the Tory party plan is to give equal tax breaks to business and the consumer thereby ensuring that the UK economy can grow on both sides. David Cameron has suggested that "we...
Read MoreAre we seeing a return of strikes to the UK economy?
As news filters through of a potential 48 hour strike on the London tube next month, calls have been made by the RMT union for direct talks with Boris Johnson the Mayor of London. It is believed the dispute relates to a pay agreement which effectively sees the real salary of members fall over the next five years. As a consequence, Bob Crow, the general secretary of the RMT union, is looking at way...
Read MoreWhere has all the eco-friendly tax income gone?
As the G8 summit in Italy continues to grab the headlines for all of the wrong reasons it seems that the billions upon billions of pounds of eco-friendly taxes collected by the likes of the UK government have apparently disappeared with no visible impact on the environment.
Amid more and more hot air rising from the G8 summit, where the likes of Barack Obama and Gordon Brown are pre...
Will UK car production continue to improve?
The Society of Motor Manufacturers and Traders (SMMT) has this week confirmed that UK car sales are starting to recover and the fall in production numbers has improved dramatically although it is still down 16.1% compared to September last year. However, this is the lowest reduction rate in UK car production for 12 months but will it continue?
There is no doubt that the UK governmen...
PwC concerned about return to recession
PwC has today issued a damning report on the UK economy and UK finances with a suggestion that a possible return to recession is a 25% to 30% probability. The report also suggests that the next incoming government will need to find an additional £20 billion a year to balance the books in the short term with an increase in VAT and the introduction of various environmental taxes likely to hit the U...
Read More