Thursday, 21 October 2010

More worries for UK economy – are we heading for a double dip recession?

A worrying report from the British Chambers of Commerce (BCC) warned that UK economic growth in the third quarter of this year was “considerably” slower than the previous quarter and businesses could still face trouble in months ahead.
With Christmas fast approaching and the VAT increase being introduced in January, it was thought that shoppers would try and get their festive purchases early but it seems the report has rejected the assumption.

A survey from the British Retail Consortium (BRC) revealed similarly concerning results showing that growth in the UK retail market slowed from 1% in August to 0.5% in September.

Although of course, these figures could change very quickly, it is a clear sign that the UK is not out of the water just yet.

Director general of the BRC, Stephen Robertson said: “We’ve now had six straight months of low growth thanks to persistently weak consumer confidence and worries about the future.”

He added: “It’s clear people are cautious and major spending is largely on hold.”

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