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Will the increase in UK economic activity be short lived?

It seems every day there are differing opinions, differing reports and differing surveys on the UK economy. One day the impression is that the UK economy is improving while the next day it seems as though the economy is back to square one. However, a simple look at the facts and figures regarding the UK economy does not on the whole make good reading.

There have been signs of improvement in UK property market although many analysts believe that the recent increase in average house prices is more to do with a shortage of quality stock on the market than increased consumer demand. We also saw an increase in UK retail sales last month although much of this has been put down to a particularly wet July which for some reason has led to an increase in sales of furniture and homeware.

It seems that every positive regarding the UK economy is attracting a negative which ultimately appears to be cancelling out hopes for the future. However, make no doubt about it that the economy will turn at some stage and the longer the recession goes on the more pent-up demand there will be in the background, ready to kick in as and when we finally see the real green shoots of recovery.

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