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U.K. Economy Faces `Serious' Recession Risks, BCC Survey Shows
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This Link is located in the Public Channel Housing Bubble and Bear Links.
Posted by ian 1 year 256 days ago (bloomberg.com). Views: 36
Tags: united kingdom u.k. housing bubble euro europe |
| Related Tags: credit crisis gold wall street peter schiff economics inflation banks |
July 8 (Bloomberg) -- Sales of services and manufactured goods in the U.K. fell in the second quarter, posing ``serious risks'' that the economy will tumble into a recession, the British Chambers of Commerce said.
An index based on a survey of 4,758 companies fell to minus 2, the lowest since 1992, from 17, according to the London-based lobby group. Another index tracking factories declined to minus 3 from 12, the least since the end of 2001.
``We are now facing serious risks of recession,'' David Kern, economic adviser to the BCC, said in a statement. ``The outlook is grim, and we believe that the correction period is likely to be longer and nastier than anticipated.''
Falling property prices, a dearth of credit and record oil prices are dragging down U.K. expansion to its weakest since the early 1990s. Bank of England policy makers, who meet this week, are gauging the risks to the economy from the fastest inflation in a decade, which prompted four of them to consider advocating a rate increase last month.
``The worries about a threat from a slowdown are far greater than the threat of inflation,'' said David Frost, director general of the BCC, in a Bloomberg Television interview recorded yesterday. ``Over the last three weeks there has been a dramatic decline in confidence. Almost every indicator is pointing south.''
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