A poll conducted by Populus for Capital Spreads has found increasing confidence in the UK economic recovery. The poll of 200 investors and analysts found that 82 per cent believed the economy would continue to improve over the next twelve months.
The poll represents a significant increase from 69 per cent last year. Increasing growth forecasts and the certainty of low interest rates until unemployment falls below 7 per cent has led to increasing optimism about the UK''s economic recovery.
However there was a significant minority differing with the optimistic mood. 30 per cent of those polled said the UK recovery is a overly reliant on a housing boom which may may be a bubble. However they still expect economic growth in the near term to continue.
The prolonged period of low interest rates and government interventions such as the Help to Buy scheme have led to an increase in warnings for the UK not to repeat the mistakes of the past and return to the boom and bust of the previous decade.
Some are less convinced that the economy is turning a corner. Steve Baker MP earlier this year:
I’m asked to celebrate the economy turning a corner. Let’s hope I’m wrong and that this time a policy of directing credit expansion into housing will produce sustainable, inclusive and equitable prosperity.
Despite these concerns, of those surveyed 62 per cent believe the economic recovery is sustainable.