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UK is back in recession, says OECD

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posted on Mar, 29 2012 @ 05:42 AM
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I noted back in February that Italy had slipped into recession and just a couple of days ago, it was reported Spain has slipped into recession.

Now, according to the OECD, the UK is in recession. Figures indicate a mild recession granted, but with slowing global growth and rising sovereign debt, there is little cause for optimism from our European folk, and seriously some outright deluded idiots that hold the crisis is nearly over, as I recall ECB head Mario Draghi claimed recently.
Hardly going to pay down huge debt when economies are contracting and state revenue is falling. Speculation that the Eurozone sovereign debt crisis is gonna ramp up again is almost certainly on the horizon, and will be much worse this time around given much bigger economies than Greece headed straight toward similar crisis.


UK Telegraph


Britain has plunged back into a recession, as the economy continued to shrink in the first three months of the year, according to a leading global authority.

In a major blow for the Chancellor, the Organisation for Economic Co-operation and Development (OECD) has calculated that the UK economy shrank in the first three months of the year.

Over the January to March period, economic output fell compared to the previous quarter, at an annual rate of -0.4pc, the Paris-based think-tank believes. That would imply quarter-on-quarter growth of -0.1pc, said economists.

After three months of negative growth at the end of last year, that figure would signal that the UK has double-dipped back into a recession.

The analysis, contained within the OECD's interim economic assessment, will pile pressure on George Osborne after official figures on Wednesday slashed the UK economy's growth profile over 2011.

The economy shrank by a bigger-than-thought 0.3pc in the last quarter of the year, the Office for National Statistics reported.




posted on Mar, 29 2012 @ 05:46 AM
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Crikey...I didn't even realise that we had come out of recession. Perhaps they just mean that we have gone into more of a recession. With no manufacturing, little in the way of anything other than financial products and education in terms of exports, not sure if we will get out of the trough until everyone else does. We're like the cling-ons (I think dag is the appropriate term for you Australians) of the rest of the world. The ultimate in co-dependency.



posted on Mar, 29 2012 @ 05:49 AM
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Did we come out of the one we'd been in the last couple of years already?
Rome wasn't built in a day. Lets try and get our industries back on track, and creating more jobs before we start worrying about the state of the economic climate. You need money to spend money, and you need a job to have money to spend.



posted on Mar, 29 2012 @ 05:50 AM
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I though the UK figures showed growth? (albeit miniscule growth). Possibly revenge by a Paris based institution for UK based agencies threats to French AAA status?

Still on going big works in construction which is usually an indicator of a healthier economy.......



posted on Mar, 29 2012 @ 05:51 AM
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Originally posted by Lulzaroonie
Did we come out of the one we'd been in the last couple of years already?
Rome wasn't built in a day. Lets try and get our industries back on track, and creating more jobs before we start worrying about the state of the economic climate. You need money to spend money, and you need a job to have money to spend.


What industries do you propose that we 'get back on track'? Shopping seems to be the only industry that the British seem able to engage in.



posted on Mar, 29 2012 @ 06:09 AM
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The growing industry in the UK over the period was 'services'.
edit on 29-3-2012 by surrealist because: sentence repaired



posted on Mar, 29 2012 @ 06:12 AM
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reply to post by Biliverdin
 


How about high end engineering? Satellites, wave energy technology, etc. Or construction.

Can't see finance being their for ever seeing as how that has gone rather wrong!

The problem with the coalition plans is that they were based on increasing manufacturing. UK sells most stuff to Europe. If Europe is up the swanny, there is no one for new manufacturing in the UK to sell to, hence no growth of that sector. Therefore a strong Euro is very much in the UK's interests.

To Surrealist,

For services, read financial services - that sector has actually somehow grown a bit in terms of UK GDP which is rather worrying. Not that it is growing but that after 2008, London is still trusted globally!
edit on 29-3-2012 by Flavian because: (no reason given)



posted on Mar, 29 2012 @ 06:14 AM
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Originally posted by Flavian
reply to post by Biliverdin
 


How about high end engineering? Satellites, wave energy technology, etc. Or construction.

Can't see finance being their for ever seeing as how that has gone rather wrong!

The problem with the coalition plans is that they were based on increasing manufacturing. UK sells most stuff to Europe. If Europe is up the swanny, there is no one for new manufacturing in the UK to sell to, hence no growth of that sector. Therefore a strong Euro is very much in the UK's interests.


It's not finance that we lead on, it is financial products...insurance and the such like.



posted on Mar, 29 2012 @ 06:15 AM
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reply to post by Biliverdin
 


It is also the place for currency exchange, etc. That is a big reason the city was scared of French and German proposals for the transaction tax.



posted on Mar, 29 2012 @ 06:19 AM
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reply to post by Flavian
 


You've got a point with the high-end engineering too...


It is also about engineers getting close to the customer to deliver what the client needs. GKN, for example, under Sir Kevin Smith concentrated on producing the sort of powertrains that its automotive customers demanded. Weir, with a heritage in pumps and valves, has tailored its proprietary knowledge to its cash-rich customers in the drilling and digging industries. IMI has both specialised and focused on close customer relationships.

Such approaches have meant that Britain’s engineering elite have been re-rated by the investment community. Long used to their shares trading at a discount to their international peers, Britain’s mechanical engineers are being rated on similar earnings multiples as the best of the Americans and Scandinavians.

“We still have a world-class reputation for engineering,” Stephen Tetlow, chief executive of the Institution of Mechanical Engineers, argues.

But there are challenges, including the effect of high tuition fees on the uptake of engineering degrees, recruitment to replace an ageing workforce and the poor state of British infrastructure.

Future opportunities, according to Mr Tetlow, rest in the design and construction of offshore energy structures “where we could be a real leading force” and the design of world-class, energy-efficient cars.


www.lloydsbankwholesale.com...

Problem is though, judging from the above analysis...is that if focus moves any more to design alone, that means less actual jobs...and certainly less training opportunities...



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