Has the UK economy really turned the corner?
At this moment in time it feels as though the UK economy is now on the crest of a recovery with unemployment falling in the third quarter of 2009 and recent data pointing to a recovery in UK economic activity. However, sceptics believe that the recent figures which have given some investors hope for the future could soon turn about face and the UK economy could face further pressure in the first quarter and the second quarter of 2010.
There is a consensus feeling amongst analysts that while unemployment figures fell in the third quarter they are likely to rise again in the fourth quarter and in early 2010. It is fact that unemployment figures will lag a recovery in the UK economy and today's surprise announcement of a fall in unemployment numbers seems to have been predominantly the result of an increase in part-time employment numbers.
However, on the plus side the announcement of a fall in unemployment numbers is likely to give consumers and businesses a lift, even if this is short lived, and we all know that consumer and business confidence will be vital to the eventual recovery in the UK economy. There is hope regarding the UK economy but it is vital that nobody gets carried away at this point in time.
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