August 16th 2010 Leave a comment
Well, three months ago we were asking the same about the economy showing signs of recovery.. Was the doom and gloom all over or was this just a ‘dead cat bounce’ ?
I will have to admit, many of the tabloid newspapers three months ago were singing the praises of an apparent economic recovery, possibly delivery false hopes on the consumer, potentially sending us out to spend again; whereas many of the investment bank economic reports painted a different picture, with ‘double dip recession’ being many a headline. However the average individual never sees these reports and therefore is fairly reliant on tabloid front pages delivering the best indication for where we are going as a global economy. One thing seems certain; a floundering UK housing market with increasingly larger deposits required for most mortgages, will dull consumer confidence, causing a reduction in spending, which only escalates a double dip here in the UK. I hope I am wrong, but with aggressive government spending cuts and tax rises ahead, it is difficult to spot the silver lining or even light at the end of the tunnel for our struggling economy.