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Is the UK economy under threat?

While we have seen mixed signals regarding the UK economy over the last few months yesterday we saw a statement from serviced office provided Regus which does not make good reading. The company very much has a handle on the UK business arena and cited the UK as the company's most difficult marketplace at the moment with signs that the momentum of economic recovery seen in the first quarter of 2010 may be faltering.

This is a bitter blow for those who hoped the UK economy had turned a corner and perfectly illustrates the fragile nature of the consumer and business arenas. The problem now is that the more negative comment we see in the press the more chance this will impact upon consumer and business confidence and we could end up with a self-fulfilling prophecy. While it is unlikely that the UK will slip back into recession, at least in the short-term, it is also unlikely that the UK economy will race ahead in the short to medium term.

When you also take into account the likelihood of public-sector investment cuts, and an increase in taxes, the situation does not look too good for the UK economy in the immediate future.

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