UK GDP growth revised upwards
UK GDP growth was surprisingly revised higher by the Office for National Statistics with the initial figure of 1.1% economic growth for the three-months to the end of June revised to 1.2%. It would appear that there was exceptionally strong data from the construction industry which caused the revision even though many analysts had expected an unchanged figure. So what does this mean for the UK economy in the short-term?
The big question now is whether the UK economy will be pulled back towards a double dip recession or indeed whether it reverts back to the bottom of the recent economic growth trend of around 0.6%. The next few months will be vital for the UK economy amid signs that the chances of falling back into a double dip recession are growing. Whether the UK government will regret introducing massive budgets cuts in the short-term, and increasing some taxes, remains to be seen but the UK economy is perched in a very precarious position.
Historically the Bank of England has been able to use base rates as a means of controlling the UK economy but this recession is very different from those of recent times. This will require a more creative approach to the economic revival of the UK.
Share this..
Related stories
Government spending cuts hit the high street
Today's figures from the Office for National Statistics show that retail sales in the UK have fallen by 0.5% in August which is the first reduction in over six months. The sale of food, fuel, clothes and household goods were all down with non-food stores also showing a significant drop of 0.7% in overall sales. The overall decline in food stores sales was 0.5% over the period and the Office for Na...
Read MoreMarketing budgets fell towards end of 2009
The latest Bellwether report has cast doubt on the confidence of UK businesses in the UK economy. The survey, which is well respected in the marketplace, confirms that the final quarter of 2009 saw marketing budgets across the UK fall to a two-year low. This would seem to be at odds with hopes that the UK economy has left the recession behind in the final quarter of 2009 and moved back onto the gr...
Read MoreIs Alistair Darling protecting Gordon Brown's back?
Last week's White Paper from Alistair Darling regarding the future regulation of the UK financial system has received something of a lukewarm welcome from the financial industry amid signs that the government is loath to go back and amend some of Gordon Brown's "mistakes". While the headlines suggest there will be a significant increase in the regulatory straitjacket for the financial system, on t...
Read MoreMervyn King warns next government of tough times ahead
Mervyn King, the governor of the Bank of England, has today suggested that the next UK government would have to make so many controversial cuts in public services that it would be potentially unelectable for decades to come. There is a growing concern that the next UK government could be left holding a poisoned chalice with large-scale public sector investment cuts, job cuts in the public sector a...
Read MoreLloyds bank announces 700 job losses
Lloyds bank has today announced a further 700 job losses with news that the company's contract with Equitable Life is to be terminated in March 2011. Equitable Life is moving the administration to India with firm HCL with more than 200 job losses. As a consequence, Lloyds bank will be moving 750 life, pensions and investment administration jobs from Aylesbury to Edinburgh and Bristol which will re...
Read More