UK Economy Growth

The fourth quarter of the UK economy has shown an increase in growth that was more than the entire year. It seems that the fourth quarter showed a jump in credit costs which created a demand for policy changes with banks and brokers. It seems that the domestic products have increased by .6 percent in the last three months creating an inflation rate above the projections. This was actually termed to be .5 percent more growth than the projected rate. It is also more than the entire year showed. Since the economy only grew about two point nine percent in the earlier part of the year.

Despite the increase in the growth of the economy there is still a lot to worry about as these numbers do not reflect the overall increase of past years. In fact the growth of the UK economy in this year has shown a significant slump and therefore the lowest actual growth since the 1990’s. Part of the blame has been left at the door of the US subprime issue. It seems that the consumer spending has come to a stop, and thus the housing boom that was going on has significantly fallen. This means that the inflation the Bank of England is seeing is going to cause more problems. It is also likely that there are going to be a stop to the interest rate cuts, as the economy in the UK is not going to be able to handle them.

The talk is that the US credit crisis has been extending into the UK which has hurt the financial services a great deal. With further impact on the economy it is projected that the entire economy in the world market is going to see significant issues related to the US economy. The UK has expended by seven percent in the last three months rather than the eight percent it had been doing. This means that it is beginning to move a little slower and the economy is decreasing rather than growing. The industrial markets have seen a little bit of stability with a three percent increase, but the manufacturing is staying pretty much the same.

Many of the economists in the UK believe that the Bank of England is unlikely to cut rates, unlike the surprise of Tuesday the 22nd in America. Of course there are still issues to be concerned about, and may even warrant such a cut. The inflation has been causing issues with the oil and food prices. This means that the rising prices in food and oil are causing a significant crunch on the income of the consumers. This means that they are unable to buy as many items as before and that they are beginning to struggle overall with their bills. The talk is that if something doesn’t change the subprime crisis is going to further impact the UK, with their own credit crunch. This means that the Bank of England may not have any other option other than lowering the interest rates again.

Back To January 2008 Financial News
Purchasing with Credit Cards
Traps with Credit Cards
Understanding Credit Scoring
What Is A Credit Reference Agency
Testing Your Debt
10 Ways To Save Money
Benefits of Savings
How To Save of Invest Your Money
Individual Savings Accounts
Sainsbury’s Bank Internet Savings Account
Product Types For Savings
Saving with Child Trust Funds
Savings and Investments Advice
Trouble Ahead with Free Banking
Warning: Savings Rate Change
What Makes Consistent Savings Account?
Credit Building Solutions
Britain Needs to Protect Itself
Free Banking or Unfair Bank Charges
Reintroducing Child Savings
How To Get The Most From Reward Credit Cards - Part 1
How To Get The Most From Reward Credit Cards - Part 2
UK Economy Growth
UK Rate Cut
US Recession and Britain