Users Online Now: 676 (Who's On?)		Visitors Today: 124,519
Pageviews Today: 347,595	Threads Today: 513	Posts Today: 7,656
07:01 PM

News

Back to Forum

Post New Thread

View Favorites

UK economy grinds to a halt ~ 0% growth

RSS

Wasayo
User ID: 52832
8/22/2008 11:13 PM
Report abusive post

UK economy grinds to a halt ~ 0% growth

Quote

Recession a step closer as economy grinds to a halt for the first time since 1992 with growth at 0%

By Justin Harper
Last updated at 3:15 AM on 23rd August 2008

Britain slipped nearer recession yesterday when figures showed the economy had finally ground to a halt.

For the first time in 63 consecutive quarters going back to 1992, growth was officially zero per cent.

The dismal figures put paid to Gordon Brown's boast that the economy had grown in every quarter since Labour came to power.

Recession fears: The UK economy has ground to a complete halt and some experts believe the we are already in a recession

The Office for National Statistics had predicted output for the quarter from April to June to be 0.2 per cent, but even that level of growth could not be achieved.

While a recession technically happens after two quarters of falling economic growth, some experts believe we are already in one.

George Buckley, economist at Deutsche Bank, said: 'The figures are very weak and suggest the UK economy is already in recession.'

More...

Relief for homeowners as fixed rate deals return to levels of a year ago.

Economists warned that the recession would be a prolonged one unless the Bank of England steps in with an urgent cut in interest rates.

Stewart Robertson, of Morley Fund Management, said: 'The Bank needs to do something to prevent a fairly shallow recession from getting worse. They need to cut rates this year.'

Brian Hilliard, of Societe Generale, said: 'This really does put a rate cut firmly on the agenda, although it is unlikely to come until we have seen the peak in inflation.'

The value of the pound also took a battering in response to the economy's stagnation.

Sterling skidded to a near 12-year low against the dollar as investors were scared off.

But while pressure is growing on the Bank to cut interest rates to try to kickstart the economy, it has its hands tied in other respects because it is trying to fight the growing problem of inflation.

A rate cut could boost the economy, but would also create further inflationary pressures.

Jonathan Loynes, at Capital Economics, said: 'While the Bank of England expected the economy to slow down this news is still pretty devastating. We see the recession becoming deep as it gathers pace.

'The biggest casualty will be some sizeable job cuts.'

The gloomy figures, which bring an end to the longest period of uninterrupted growth for more than a century, also showed how families have been struggling with soaring energy bills and food costs.

Household spending fell by 0.1 per cent - the lowest level for three years as Britons tighten their belts in the credit crunch.

The track record of continuous economic growth has been one of Labour's greatest achievements since coming to power and the cornerstone of Gordon Brown's success as a Chancellor.

The Shadow Chancellor George Osborne said: 'Now economic growth has ground to a halt and Brown's bubble has burst.

'Millions of people are paying an unfair price for Labour's economic incompetence.'

The housing market slump, squeeze on consumer spending and business investment all point to a grim outlook for UK plc for months to come.

All parts of the economy are suffering with the once-healthy services sector stuttering to just 0.2 per cent growth.

This is its worst performance for almost 18 years.

The U.S. is also following the same economic course with multi-billionaire investor Warren Buffet saying its recessionary woes won't be shaken off until next year.

Buffet, the world's richest man according to Forbes magazine, said: 'You always find out who's been swimming naked when the tide goes out.

'We found out that Wall Street has been kind of a nudist beach.'

[link to www.dailymail.co.uk]

picesnator
User ID: 318318
8/22/2008 11:29 PM

Re: UK economy grinds to a halt ~ 0% growth	Quote
hammered by high taxes...so yeah....i bet it is tanking...

Back to Forum

Post New Thread

View Favorites

Vote For Godlike Productions!

Disclaimer:
This website exists for entertainment purposes only. The reader is responsible for discerning the validity, factuality or implications of information posted here, be it fictional or based on real events. Moderators on this forum make every effort to review the material posted on this site however, it is not realistically possible for our small staff to manually review each and every one of the more than 5000 posts GodlikeProductions gets on a daily basis. The content of posts
on this site, including but not limited to links to other web sites, are the expressed opinion of the original poster and are in no way representative of or endorsed by the owners or administration of this website. The posts on this website are the opinion of the specific author and are not statements of advice, opinion, or factual information on behalf of the owner or administration of GodlikeProductions. This site may contain adult content and if you feel you might be offended by such content, you should log off immediately.

Not all posts on this website are intended as truthful or factual assertion by their authors. Some users of this website are participating in internet role playing, with or without the use of an avatar. NO post on this website should be considered factual information on face value alone. Users are encouraged to USE DISCERNMENT and do their own follow up research while reading and posting on this website. Godlikeproductions.com reserves the right to make changes to, corrections and/or remove entirely at any time posts made on this website without notice. In addition, Godlikeproductions.com disclaims any and all liability for damages incurred directly or indirectly as a result of a post on this website.

This site is provided "as is" without warranty of any kind, either expressed or implied. You should not assume that this site is error-free or that it will be suitable for the particular purpose which you have in mind when using it. In no event shall Godlikeproductions.com be liable for any special, incidental, indirect or consequential damages of any kind, or any damages whatsoever, including, without limitation, those resulting from loss of use, data or profits, whether or not advised of the possibility of damage, and on any theory of liability, arising out of or in connection with the use or performance of this site or other documents which are referenced by or linked to this site.

Some events depicted in certain posting and threads on this website may be fictitious and any similarity to any person living or dead is merely coincidental. Some other articles may be based on actual events but which in certain cases incidents, characters and timelines have been changed for dramatic purposes. Certain characters may be composites, or entirely fictitious.

We do not discriminate against the mentally ill!

Fair Use Notice:
This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. Users may make such material available in an effort to advance awareness and understanding of issues relating to civil rights, economics, individual rights, international affairs, liberty, science & technology, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C.Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
For more information please visit:
http://www.law.cornell.edu/uscode/17/107.shtml

This Disclaimer is subject to change at anytime.

Mail Webmaster with questions or comments about this site.

Page generated in 1.276s (6 queries)