BoE Boss Issues Recession Warning
Bank of England governor Mervyn King has added his voice to the groundswell of opinion that Britain is heading for a recession.
Mr King said a recession was “likely” – other experts say the country is already in a downturn.
Respected bodies such as the European Commission, the Organisation for Economic Development and business lobby group the CBI have said the UK economy started shrinking in July.
The weak housing market, rising energy bills and the credit squeeze that has hampered lending to home-owners and businesses for the drag are all behind the slowdown, they say.
Speaking about the banking and shares crisis, he said:”Not since the beginning of the First World War has our banking system been so close to collapse.”
The latest warning came at the weekend from forecasters at the Ernst & Young ITEM club, who said the economy
Official data showed the UK economy was flat in the second quarter this year, the first time it failed to grow for 16 years.
The Office for National Statistics will reveal how the third quarter fared this Friday, with most experts predicting the economy to have contracted by 0.2%.
A raft of recent economic statistics have pointed to slowing activity since July, including spiralling unemployment and a marked reversal for the UK’s
dominant service sector which makes up around three-quarters of the economy.
A survey published on Tuesday said confidence among UK manufacturers was at its lowest in almost three decades.
Original article: BoE Boss Issues Recession Warning From skynews
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Wachovia Reports Q3 Loss
TwitDoc: Proving That Every File Format Will Eventually Be Shareable Over Twitter
UK Entrepreneurs: Get Your Funding While You Still Can
Fap Turbo Reviews Forex Trading Software
Comments
No comments yet.
Leave a comment