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.
Share this..
Related stories
How long will the UK economic recovery take?
The National Institute of Economic and Social Research (NIESR) is the latest in a line of groups to issue a downbeat statement regarding the future of the UK economy. The view of the NIESR, which is not replicated across the UK at this moment in time, is that UK house prices will continue to fall in value for another three years and ultimately it could be 2014 until we can say categorically that t...
Read MoreKraft Foods looking to create jobs at Cadbury
Despite headlines over the last few days suggesting that Kraft Foods would introduce a cull of jobs at Cadbury in the UK it seems that the company has very different plans. It has been revealed over the weekend that Kraft Foods is actually looking to create more jobs in the UK in the medium to longer term after assessing the situation and cutting out any synergy savings in the short term. Wheth...
Read MoreDo We Really Need The Stock Market?
To many people the stock market seems to be a play area for rich individuals and institutions and it does not even register with the majority of the UK population. So what role does the stock market play and is it really needed?
Only those who have no dealings with or do not understand the stock market would even ask that question. The market is vital to both the business sector i...
Will emerging markets drive worldwide economic recovery?
Paul Polman, the chief executive of consumer goods giant Unilever, has today suggested that consumer spending in Europe and the US will not recover for at least five years. He believes that future growth for his own company will come from emerging markets around the world with Europe and the US struggling to pull away from the after effects of the credit crunch and the worldwide recession. Whil...
Read MoreUK debt crisis could affect millions
30/12/2013 The number of people using more than half of their disposable income on debt repayments could almost double from 600,000 to 1.1 million by 2018 if interest rates rise to 3% according to the Resolution Foundation. The Resolution Foundation used the latest 5-year growth projections from the Office for Budget Responsibility to make these predictions. Furthermore, the Resolution Found...
Read More