Last hope for the UK economy evaporates
Many analysts believe that exports from the UK business arena hold the key to the economic prospects for the country in the short to medium term. Those who have been looking towards the export market will today be dismayed to learn that exports fell by 2.1% in August which signalled the end of a period during which UK exports had shown signs of strength.
The only reason that exports from the UK were performing better than the overall UK economy was the relatively low exchange rate of sterling. However, even though imports also fell, the decline in exports is a worry especially at this stage of the economic cycle. Interestingly there was a very different mix between EU and non-EU exports with Eurozone exports up by 1.3% over the period and non-EU export down by a massive 4.9%.
Those UK businesses who were pinning their hopes on an improvement in exports will now be looking elsewhere to keep their businesses afloat. This is a very disappointing development for the UK economy and one which could have far reaching consequences in the short to medium term. Will this be the straw which broke the camel's back and forced the UK government to introduce fiscal stimulus programs sooner rather than later?
Share this..
Related stories
Is Union Power Making A Comeback?
The last few months has seen more strike action than we have seen for the last decade from public workers to oil delivery workers and everything in between. Unions have spotted a need for their services and they are more than happy to step into the breach. But what is their real angle? What are they really after?
It is no coincidence that the resurgence of the Union movement is co...
Will The Banks Leads Us Out Of The Economic Downturn?
There are many in the UK who blame the reckless tactics and strategies of the UK banking sector for the ongoing economic downturn. Traditionally the banks might be expected to bring us out of the slowdown but it seems as though the government and the regulators have different ideas.
While there is no point introducing stricter guidelines with the economy struggling at low levels, i...
Irish banks fear nationalisation
While just recently we saw Anglo Irish bank taken "in house" by the Irish government there are fears this evening that both Allied Irish bank and Bank of Ireland are on the verge of nationalisation. The share price of these two companies have today halved with investors literally running for the hills on concerns that the Irish government is set to nationalise the sector.
Just a sho...
Alistair Darling admits unemployment will rise further
In a serious blast of reality for those looking at the UK economy through "rose tinted glasses" even Alistair Darling has admitted that unemployment is set to increase for some time yet. Unemployment hit 2.2 million last month which is the highest level since Labour came to power in 1997 although many believe this could be just the tip of the iceberg.
While Alistair Darling was unwi...
Could the UK debt rating be under pressure?
Yesterday we saw the Portuguese government hit with a credit rating downgrade from AA to AA- when the Fitch credit rating agency reviewed the situation regarding Portuguese national finances. While Portugal is not the first country to be hit by a credit rating downgrade during these difficult economic times the problem is that many believe the UK debt situation is far worse than Portugal and the U...
Read More