UK managers expect double-dip recession

worldtraveller

A bleak assessment of the economic outlook from managers predicting a double-dip recession and the private sector failing to replace jobs lost to public sector cutbacks provided a grim background for David Cameron's address to the Conservative Party conference.

The Chartered Management Institute (CMI) said it saw little prospect of an early recovery. It called for the coalition Government to go further and faster with its deficit reduction programme to improve longer-term prospects and introduce incentives to provide some growth stimulus.

Only 8% of the 616 CMI members polled for the organisation's half-yearly economic survey expected to see any growth in the economy over the next 12 months, and more than two-thirds felt the economy will sink back into recession.

The survey results also delivered another blow to Mr Cameron's hopes that the private sector can fill the gap left by the public sector rundown. They show private sector managers are most pessimistic about the employment outlook with 81% expecting further cuts compared with 73% in the public sector.

Telegraph.co.uk

MacMickster

Until the Eurozone problems play out and the impact on the UK economy becomes clear then I can't see why anyone would expect to see expansion in the private sector. The reality that even major firms in the UK may need access to funds, that the banks may soon be unable to provide, was surely behind the Credit Easing proposals outlined yesterday.

It is difficult to predict what the UK, Eurozone and world economies will look like a few years from now. It won't be over until the fat lady sings as they say, but I think that I hear her warming up in the wings and if my ears don't deceive me she is rehearsing Status Quo's "Down, down, deeper and down".

The_White_Horse

what jobs lost to the public sector????? they are having a laugh. they still get their pay rises. its just that they only get one rather that two these days. Also, look at the tube drivers who will be on 50k plus. disgusting. even bob crow is jumping up and down with delight meanwhile fares go up 8%. sickening.

the public sector has not felt one ounce of pain.

they need to be dessimated.

i work in london and would fully support a full closure of the tube network for months if it finally meant the defeat of the unionist scum that run it. so would millions of others.

Thrugelmir

MacMickster wrote: »

Until the Eurozone problems play out and the impact on the UK economy becomes clear then I can't see why anyone would expect to see expansion in the private sector. The reality that even major firms in the UK may need access to funds, that the banks may soon be unable to provide, was surely behind the Credit Easing proposals outlined yesterday.

The UK has to continue to address its own unique set of issues. Not wait for dithering Euro politicians. Nor the Greeks to accept reality.

The private sector is growing in terms of new jobs. Not at the rate the public sector is losing them however. This is a fact of life. As resolution of the fundamental structural issues in the Uk economy will take some years.

kabayiri

Thrugelmir wrote: »

The UK has to continue to address its own unique set of issues. Not wait for dithering Euro politicians. Nor the Greeks to accept reality.

The private sector is growing in terms of new jobs. Not at the rate the public sector is losing them however. This is a fact of life. As resolution of the fundamental structural issues in the Uk economy will take some years.

This may sound harsh but as businesses fail in the weaker Eurozone countries, this presents potential opportunity for some of our companies to step in.

At the moment, Europe gives out this 'united' vibe. Wait until it's a bit more dog eat dog.

lemonjelly

kabayiri wrote: »

This may sound harsh but as businesses fail in the weaker Eurozone countries, this presents potential opportunity for some of our companies to step in.

At the moment, Europe gives out this 'united' vibe. Wait until it's a bit more dog eat dog.

Why is it harsh? Surely that's business? Capitalism?

To be honest, if we don't take advantage of some of these gaps, we deserve to slide backwards...:eek:

kabayiri

lemonjelly wrote: »

Why is it harsh? Surely that's business? Capitalism?

To be honest, if we don't take advantage of some of these gaps, we deserve to slide backwards...:eek:

Harsh is perhaps strong, winners and losers I'd say.

European companies were not slow in buying up energy companies in the UK. It should work both ways.

Thrugelmir

kabayiri wrote: »

This may sound harsh but as businesses fail in the weaker Eurozone countries,

The only businesses severely at risk in the Eurozone are banks.

As in the UK. Corporate companies are overall in good financial health.

Thrugelmir

lemonjelly wrote: »

To be honest, if we don't take advantage of some of these gaps, we deserve to slide backwards...:eek:

In many market sectors we no longer manufacture or produce. So are dependent upon international companies investing in the UK.

RenovationMan

The longer we bump along the bottom, the more time the government has to sort out the structural problems with the UK without too much interference from the unions. Incidently the longer the economy bumps along the bottom, the longer we will have these low interest rates and hence the longer the UK populace has to pay down its debts. There is a real possibility that the UK will exit this period of economic difficulty in better shape than when we entered it.

worldtraveller

70fishday wrote: »

Just came to know that American Airlines is filing for bankruptcy.

American Airlines has some 700 big and giant planes.

It's more likely to be 'bankruptcy protection' in the U.S. and would be a 'convenient' way for them to lower their costs. They would only be doing what several other U.S. airlines have done over the recent past.