Confidence is the key to recovery in the UK economy
While the UK government tries to talk up the UK economy, banks attempt to gloss over rising bad debts and surveyors suggest that UK property prices are on the rise, the truth is that until we see a definitive return of confidence to the consumer and investor markets the UK economy is going nowhere. Confidence is the key to any recovery in the UK property market and the UK economy as a whole and unfortunately there is little sign of a marked increase as yet.
For those who do not understand the impact which confidence can have on a sector and an economy, just take a look back at the decline of the worldwide economy which began when investors lost confidence in the mortgage sector in America and began to bailout. When the sector turned many investors ran for the hills and those who decided to ride the storm have been effectively "thrown to the wolves".
It is also noticeable that the decline in consumer confidence in UK led directly to pressure on the retail sector and the UK high street which ultimately saw the demise of many well-known names. Once the confidence factor in any company, sector or economy has gone it is very difficult to turn around in a short space of time.
Share this..
Related stories
Npower to cut 1,400 UK jobs
28/11/2013 Energy giant Npower which employs 9,600 workers in the UK is to cut 1,400 UK jobs, with a number of these being outsourced to India. The cuts are expected to be in relation to site closures at Peterlee in Durham, Thornaby in North Yorkshire, and Stoke-on-Trent in Staffordshire, however it’s expected that Npower will confirm exact details later on. Npower stated that the reason...
Read MoreWill student fees be an easy target for political parties?
As we covered in one of our posts early today there appears to be a consensus growing with regards to student fees and budget cuts in the UK. While many parties have come forward to suggest that student fees should be increased and the income level at which students have to pay for their education should be lowered there has been silence from the political arena.
There is strong spe...
Brown warns of eastern European risks
Eastern European nations are currently under threat from the credit crunch, Gordon Brown has said.In a meeting in France with president Nicolas Sarkozy, the prime minister expressed concern that the rapidly-growing economies would be hit hard by the crisis.This is due in part to the "flight to safety" which is currently taking place among nervous investors - who are taking their money out of offsh...
Read MoreMarks & Spencer Christmas sales disappoint
In this new period of renewed hope for the UK retail sector a major setback occurred today with news that Marks & Spencer festive sales were up by just 0.8% in the three months to Boxing Day. This is a far less impressive performance compared to the likes of John Lewis and Next and today we saw the share price of Marks & Spencer fall on investors disappointment. So what does this mean for the UK r...
Read MoreWill MPs expenses be brought into line?
There is growing concern this evening that the bitter MPs expenses debacle will be watered down in the New Year despite the fact that the government has signalled its intention to incorporate all of Sir Christopher Kelly's proposals into future legislation. This is a bitter blow for the likes of Gordon Brown, David Cameron and the other major political parties who are fighting to regain the trust...
Read More