CBI Report Points To More Doom And Gloom
A report by the Confederation of British Industry (CBI) does not make good reading for those looking for the slightest sign that the economy is turning. A survey of manufacturers in the UK found that the majority of them expect their output to fall over the next quarter as the economic depression continues to hit home. This is the worst figure for seven years and has the potential to take us all the way back to the recession of the 1990s if there is no improvement in the economy.
The problem is that the economy is like a large ship which is turning the wrong way and out of control. As the momentum builds and the speed increases it becomes harder and harder to turn it the right way. Any moves which the government or the Bank of England make now will have little or no affect in the short term until the ship steadies and then starts to turn back. Unfortunately there is no quick short cut past this process and it is just pain which the population and industry will have to endure.
In the eyes of many the authorities have left it too long to stop the economy moving into recession and with sentiment and business levels both expected to fall further in the short term the outlook is not good.
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