From the 2007-2009 financial crisis economy, UK has not fully recovered from the downturn caused, with many Britons left poorer as meager wage growth has been eaten up by rising prices and government tax hikes. he economy has not fully recovered from the downturn caused by the 2007-2009 financial crisis, with many Britons left poorer as meager wage growth has been eaten up by rising prices and government tax hikes.
The Bank of England had decided not to give the struggling economy another cash boost, as its concerns over stubbornly high inflation outweighed worries of a prolonged recession and dangers from the euro zone crisis. Nor can consumers and businesses rely on much help from the government defying criticism over a lack of bold steps to kick-start growth, after Prime Minister David Cameron reaffirmed his commitment to cutting a huge budget deficit.
Britons became more worried about jobs as a result their morale went down. And the mood may darken even further as news that the economy slipped into recession came out after its poll was conducted. According to RBS economist Ross Walker It's all a bit grim - it's stagflation Britain, referring to a 1970s term combining economic growth stagnation with inflation. Official data showed that UK’S manufacturers raised prices more than expected in April despite lower input costs, increasing the risk that consumer price inflation may not fall as fast as the central bank hopes. As per The Office for National Statistics the construction output plunged by 4.8 percent between January and March - more than estimated in the first reading of first-quarter GDP. This revision alone pushes the economy deeper into the red, shaving off another 0.1 percentage point of GDP growth. Apply for one month loan @ http://onemonthloan.org.uk/ and get cash for your emergency in no time.
Mervyn King the Bank Governor stated that the economy was recovering slowly and steadily, though many economists expect him to leave the door for more easing open when he presents the central bank's new growth and inflation forecasts next week. For some Britons it is still business as usual: the country's biggest department store chain John Lewis reported another double-digit rise in weekly sales. The retailer has been outperforming the wider market as its generally more affluent customers have been less impacted by the economic downturn. However high inflation may continue to weigh on most consumers, depriving the economy of one of its main drivers.