Triple blow for battered UK economy August 12, 2008 Retail sales and housing market suffer as struggling consumers rein in spending Britain’s battered economy will be dealt a triple whammy today, with fresh evidence that the housing market and consumer spending are continuing to contract and that manufacturers are being hammered by soaring costs. This summer has been the worst on the high street [...]
Credit crunch wipes out £600bn August 11, 2008 Around £600bn worth of wealth may have been wiped out in the UK because of the credit crunch, an analysis by PricewaterhouseCoopers has revealed. The study, conducted by PwC economists, focused on the impact of the credit crunch on the British economy over the twelve months to June 2008. The report estimates that the downturn [...]
The firms the credit crunch has favoured August 11, 2008 The news about the worsening economy seems relentless and yet it is not all bad. As the credit crunch celebrates its first birthday, it’s clear that some companies are benefiting from a trend towards trading down. Consumers might be feeling the the pinch but budget options are becoming more appealing and companies such as Dominos, [...]
We were too optimistic, CBI admits August 11, 2008 Inflation is set to reach 5 per cent this year, the employers’ group warns its members Business should brace itself for a prolonged rocky ride as the economy deteriorates faster than expected, CBI director-general Richard Lambert has warned. In a letter to members of the UK’s largest business group, Lambert said forecasters, including the CBI, [...]
IMF cuts growth forecasts August 7, 2008 The International Monetary Fund yesterday cut its forecasts for the next two years and warned it wouldn’t “take much of a shock” for growth to become negative. It now predicts that the economy will grow by 1.4 per cent in 2008 and 1.1 per cent in 2009 – well below the 1.75 per cent it [...]
Federal Reserve holds interest rates amid “softening” employment market August 6, 2008 The Federal Reserve, in a widely expected move, held US interest rates at two per cent last night, with Dallas Federal Reserve Bank President Richard Fisher the only dissenter among the 11 person panel. The statement from the central bank referred to the “softening” labour market and the “considerable stress” upon the financial market as [...]
Services shrink again August 6, 2008 Britain is likely to slide into a recession next quarter, or could already be in one, according to City economists following the publication of more miserable data documenting further declines in both the services and manufacturing sectors yesterday. In July, the services sector shrank for the third month in a row, according to the CIPS/Markit’s [...]
Construction plunges August 5, 2008 Construction activity fell to a record low in July, driven by the collapse of the housing market and the stuttering economy, the latest survey showed yesterday. According to the Chartered Institute of Purchasing and Supply’s construction PMI, building levels fell to 36.7 last month, from 38.8 in June. Any reading below 50 means the sector [...]
Why Brussels red tape is threatening our credit market August 5, 2008 When markets hit turbulent times, we naturally look to regulators to provide stability and to restore confidence. Good regulation can be a real strength – I believe that the UK’s world-class regulatory regime contributes enormously to London’s ongoing success. The best regulation comes about through dialogue and consultation with practitioners. This is why last week [...]
Construction plunges August 5, 2008 Construction activity fell to a record low in July, driven by the collapse of the housing market and the stuttering economy, the latest survey showed yesterday. According to the Chartered Institute of Purchasing and Supply’s construction PMI, building levels fell to 36.7 last month, from 38.8 in June. Any reading below 50 means the sector [...]