Subscribe to The Money StopNews Feed

Browse > Home / News, News-Banking / UK economy in worse shape than imagined

UK economy in worse shape than imagined

September 8, 2008 by admin  
Filed under News, News-Banking

1 Comment

According to the largest manufacturer’s association in the UK, the CBI, the state of the economy in the UK is in worse shape than most actually thought. The CBI has said that the economy is deteriorating far faster than was originally thought, with the association’s director stating that there was “no doubt that the mood has darkened in the last two or three months.” He gave the stark warning to members in a letter.

The director, Richard Lambert, also went on to state that industry officials, including those from the CBI, had been far too optimistic about the state of the economy, and as such the CBI has now revised its growth forecasts downwards. The association has cut its growth forecast for next year from 1% to 0.4%, and the governor of the Bank of England, Mervyn King, has already indicated that the nation faces stagnant growth levels over the coming twelve months.

Lambert said that the global credit crunch had been ‘bigger and broader’ than had first been anticipated. He added that the soaring level of inflation had taken most people by surprise, and that high inflation levels and slow growth had sparked widespread fears over the nation sliding into recession.

He went on to state: “A year ago it seemed reasonable to hope that the worst would be over by now. That has not turned out to be the case.”

Lambert added: “This is why most analysts are now suggesting that the economy will at best only manage to stagnate in the coming few quarters, and that the growth prospects through 2009 and into 2010 look no better than anaemic.”

Recent Additions:

Tags: ,

Related Entries

  • Savings accounts suffering due to high inflation
    • Soaring inflation levels, high food prices, rocketing energy bills, high petrol costs, and increased borrowing costs have been impacting on household finances in the UK for some months now, and a recent report has shown
  • Rate Matcher customers charged increased arrangement fees
    • Back in April of this year the high street lender HSBC announced the launch of a new mortgage product designed to help homeowners who were on cheap fixed rate mortgages that were due to come
  • Is it cheaper to be on the road now compared to twenty years ago?
    • Ask any driver and they will most likely tell you that the cost of keeping their vehicle on the road is extortionate. The cost of petrol is a major contributory factor, with petrol prices having
  • Try before you buy housing could prove effective
    • A recent report has shown how some housing developers are now trialling a scheme where a potential property buyer can try out the property that they are thinking of buying for a day or two
  • Inflation levels continue to soar
    • Inflation levels in the UK have been at the centre of concern for the Bank of England and other government sectors for some months now, having rocketed to way over the government's target earlier this
  • Households to be worse off in 2008
    • Households will be financially worse off in 2008, according to Ernst & Young ITEM Club's latest forecast for the UK economy. The research, using the Treasury's own economic model, describes public finances as a "mess"
  • What the economists think of the Quantitive Easing programme
    • The quantitative easing scheme is something that the government has been relying on to help pull the UK out of recession over the course of this year, but although the scheme has been extended on
  • Will inflation levels get worse before they get better?
    • The financial headlines has recently been filled with news about the soaring rate of inflation, and this comes as no surprise given that the rate of inflation has soared to its highest level since records

Comments

One Response to “UK economy in worse shape than imagined”

Trackbacks

Check out what others are saying about this post...
  1. Savings accounts suffering due to high inflation says:
    September 8, 2008 at 4:19 pm

    [...] UK economy in worse shape than imagined [...]



Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!