UK Economy grows by 1% - Time for Caution

PUBLISHED: 25 Oct 2012 @ 10:14 | Comments (1) | More info about Clem Chambers

Whilst we have seen the UK economy starting to return to growth, there will be bumps in the road as the world economy is at a base; it hasn’t plateaued but rather it is at the smooth bottom of an economic basin.

As such we can look towards recovery and growth but because of the highly regulated governmental-systems in West these will be slow to assert themselves.

There has been a vast amount of stimulus, so there should be some green shoots. It is the impact of those oceans of synthetic money, created to boost the frail west, which will be the basis for future crises.

But because China is set to recover and the US has a good shot at turning itself around Europe is stabilising, suggesting that we will be on the recovery road in 2013.

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Comments

Mark A. Rogers 88 says:

October 25, 2012 at 10:14 am

I would agree that it’s far from a cause for celebration yet. We look for trends in forward-looking leading indicators such as business surveys in determining the degree of recovery over the summer. The most encouraging region is in US Housing, from a very depressed base. Perhaps least encouraging is the news that conditions in Germany and the composite Eurozone are not recovering convincingly, France remaining a big drag on those figures. In between, the US jobs data is not yet reflecting the additional Fed stimulus, and Chinese data is yet to confirm they’ve stopped deteriorating. That’s a very “mixed bag” picture globally.