Tuesday, November 15, 2011

. ONS half its estimate of GDP in Q2
2008-09 recession deeper than thought business lobbies for more QE

. However, the services sector rebounded in September

Economics blog:

fresh fears British double dip

The UK economy has barely increased in the second quarter, consumers cut spending, adding the new dark in the euro area and fueling fears that Britain could soon fall into recession.

Official data also showed that 2008-09 recession has been deeper than originally thought, and the worst recession since World War II. The review of the above questions, the Office for National Statistics (ONS) has reduced its estimate of GDP for April-June this year to 0.1%, suggesting that the economy was founded at the end before the European debt crisis intensified during the summer.

Economists warned that it lowered the growth forecast, officials were under threat. The shadow chancellor, Ed Balls, the data seized as evidence that the UK economy had "stalled since last fall, well before the crisis in the euro area."

"They should sound the alarm in Downing Street and Treasury matters. Show is even worse than we thought and that the economy has not increased in nine months, "he said.

"David Cameron and George Osborne urgent need to realize that spending cuts and tax increases that go too far and too fast have affected consumer confidence, recovering killed and increased unemployment . "

Unlike Cameron a message that the country is not paralyzed by sadness, there is growing evidence that consumers have curbed spending as they worry about job losses, the increase prices and the economic outlook.

The NSO said consumer spending fell 0.8% in the second quarter, its biggest decline since the depths of the recession in early 2009.

services sector picks

with a dark European Bank of England should respond quickly with another 50 billion pounds in electronic money to support the economy. But after the separate statement on Wednesday that Britain's dominant sector services market defied expectations and a slight recovery last month, the decision on whether to extend quantitative easing (QE) is likely to immediately is well balanced. Meanwhile, similar surveys in the euro area on Wednesday showed more problems. Italian service sector reduced its fastest pace in over two years in September, while service industries in Germany fell into contraction territory for the first time since July 2009.

Monetary Policy Committee of the Bank meets on Wednesday and Thursday, but analysts say it could wait until next month when the latest economic forecasts by the hand, to implement more QE.

"We think it's a matter of time before we see more QE," said James Knightley of ING Financial Markets.
"We are in November as the point of ad ..., given the proximity of the Federal Reserve and U. S. European Central Bank meeting and the policy of the G-20 in Cannes. Be seen to act in some coordinated fashion can also provide the stimulus for their money, rather than just what they are currently very volatile markets and a set of mixed data. "

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