Friday, October 23, 2009

Things can only get better?

Sometimes I wonder.

Record recession for UK economy

The UK economy unexpectedly contracted by 0.4% between July and September, according to official figures, meaning the country is still in recession.
It is the first time UK gross domestic product (GDP) has contracted for six consecutive quarters, since quarterly figures were first recorded in 1955.
But the figures could still be revised up or down at a later date, because this figure is only the first estimate.
GDP measures the total amount of goods and services produced by a country.
The pound fell sharply after the figures were released, reflecting the fact that many observers had expected the UK to have grown during the quarter.
It was down 1.6% against the dollar, at $1.6339, and down 1.7% against the euro, at 1.0878 euros.
Quarterly growth of 0.2% had been expected in the figures from the Office for National Statistics (ONS), although expectations had been tempered by recent figures showing no growth in retail sales in September, and a 2.5% decline in industrial output in August.

Now I'm no expert on economics and there are bloggers out there who can run rings around me quite easily. But I do know how it affects me personally. This year I received  no pay rise, the company actually reconsolidated after a takeover and lost about £1,500,000. But fortunately will make a profit next year if pre orders are anything to go by, people were also laid off too. However my rent, council tax, fuel costs, motoring costs, food costs etc all went up anyway, so I have to now budget very carefully as although I live within my means, I don't until next year have a great deal of spare income. So yes I know how badly off I've become, though by no means poor and not yet having to cancel Christmas.

So, the economy might improve next year, about July (bad luck Labour) but again as they were saying the same thing this year I have my doubts, I'm more the deal with it when it happens type, a lot of engineers tend to be. Still I do believe that things will improve, though I doubt I'll forget who caused the mess and I'm thinking politicians, not bankers here. It would have been easy enough to put something away for a rainy day, but they didn't, but as they're protected with my money paying their bills I doubt they care much other than wondering who if anyone will re-elect them.

Still, things can only get better? Can't they?

2 annotations:

James Higham said...

Best not to lay down chapter and verse on this. Let's pretend it's going to be wonderful and keep ourselves sane.

John M Ward said...

That is a very reasonable assessment of where we are and (not forgetting) why.

I am very much in tune with this, as someone who does know the value of putting money away ready for the bad times that are almost certain to occur sometime.

Now I am in the process of moving to a smaller home, as even that did not suffice to get through Labour's bad times (that they still often try to portray as not their fault and couldn't have been handled better) and I need to release some of the equity in my present home to tide me over.

That is a real-world effect upon someone who did at least make reasonable provision for difficult times…