The squeeze continues

Wookster

Economic recovery at risk as households forced to dip into savings
• Family finances worsening at fastest rate since 2009
• Job security fears weigh on consumer spending

Household finances in Britain are deteriorating at their fastest rate since the depths of the recession in 2009 amid fresh evidence that consumers are struggling to cope with rising prices and curbs on wages.

Fuelling fears that the economy is flirting with a double-dip recession, the monthly Markit index showed an increasingly gloomy public running down savings and taking on more debt in an attempt to make ends meet.

http://www.guardian.co.uk/business/2011/jun/20/economic-growth-consumer-spending

More evidence that inflation IS a problem.

shortchanged_2

The problem is that if we do go back into recession, it unfortunately may well turn into a depression because growth potential will be seriously stifled.

Kennyboy66

Wookster wrote: »

http://www.guardian.co.uk/business/2011/jun/20/economic-growth-consumer-spending

More evidence that inflation IS a problem.

More evidence that increasing interest rates wouldn't help the inflation figures one jot.

Thrugelmir

Wookster wrote: »

More evidence that inflation IS a problem.

Debt is the problem. UK consumers were taking on debt quicker than their counterparts in the USA at the peak.

Now its pay back time.

Thrugelmir

Kennyboy66 wrote: »

More evidence that increasing interest rates wouldn't help the inflation figures one jot.

BOE will hold down interest rates until such time as its wage inflation that's causing the problem.

I_luv_cats

Wookster wrote: »

http://www.guardian.co.uk/business/2011/jun/20/economic-growth-consumer-spending

More evidence that inflation IS a problem.

Suppose the 'doom n gloom' doesn't help, puts some people off spending (those that can afford to) and cos we are a nation of shop keepers we are in the poop and not 'smelling of roses!!'

How long do people have to tighten their belts until the pips squeak ??

We are being hit from all directions!!!!!!

shortchanged_2

I_luv_cats wrote: »

Suppose the 'doom n gloom' doesn't help, puts some people off spending (those that can afford to)

I wouldn't call it so much 'doom n gloom'....... more reality and lets face the music.

Loughton_Monkey

Thrugelmir wrote: »

......Now its pay back time.

Absolutely true.

One reason why our Government will not be losing sleep about (a) inflation, or (b) £ exchange rate.

These things automatically pass the 'payback' cost around everybody - roughly in proportion to their wealth/economic activity.

In the meantime, though, it's not a bad idea to put extra thumbscrews onto other candidates, such as benefit claimants, public sector pensions, female state pensions, and care home costs.

How else are we going to be able to inflate enough of the debt away, in time for the usual pre-election burst of spending to get GDP up to pretend we are all getting richer again?