GDP drop of 0.7% in the second quarter.

[Adrian W]

Deva Link said:

I deal in hi-tech, computer related stuff, it's always a little difficult to tell how things are going into summer as a lot of activity goes into a sort of holding mode until Sept, but I've become terrified of talking to customers as project after project seems to be getting cancelled, or at least drastically reduced in scale (which means the same work for us but much less revenue).

I work in Contract Electronics manufacturing, we make the stuff, the horizon seems to be getting closer and closer.

[hornet]

The thing I don't get is we had years of being told "we're killing the planet and have to consume less!", but now we actually ARE, for whatever reason, it's all bad news and growth is an absolute must. That's doubtless a very simplistic view, but the signals do seem rather mixed.

[voyds9]

Seeing more people who want to spend but still having difficulty getting them to purchase.

They look come back, ask about cheaper alternatives, think about it again , then buy.

The older generation are more willing to spend than the younger ones.

[thinfourth2]

Adrian W said:

Nearly everyone I deal with, customers and suppliers say it all fell off a cliff in June and hasn't recovered

Well if you know of any small decent machine shops that can do oil field equipment that are struggling for work let me know as its fking manic up here

[Deva Link]

anonymous said:

[redacted]

They won't be happy if interest rates do fall further.

[Elroy Blue]

don4l said:

We need to get government spending under control. Our welfare, foreign aid and climate change spending all need to be drastically reduced.

Unfortunately, Cameron doesn't have the cojones to stand up to the LibDems. So nothing will happen.

Don
--

Foreign aid and windmills are Cameron's babies. He'd much rather spend billions on those than the country's infrastructure.

[Mermaid]

Never mind the statistics, what is the anecdotal evidence? Shopping centres are busy, restaurants are full, sporting venues oversubscribed, taxis hard to get

[Digga]

REALIST123 said:

But, generally on the basis that the GDP is calculated those growth figures were seen.

They are averages and include sectors that have outperformed, including the darling of New labia, the financial services sector. These industries are sufficiently large to influence figures.

Personally, an anecdotal I always bear in mind is cash. The amounts of cash (apropos of the other thread on 'cash transactions, yes it is always put through the books) we see as a percentage of overall sales generally remain stable, except when the economy is under particualr stress. Cash receipts dropped off a cliff in June, which I find interesting.

[ukwill]

Teddye4687 said:

So what does this mean to a single individual who's in a (fairly) secure job earning a moderate wage, in rented accommodation (saving more than I would be paying off capital on a mortgage), who has some money in the bank toward a house deposit and pays into a private pension with employer contribution?

Do I stop my pension and buy a house?

Continue to rent and save toward a bigger deposit?

It means next to nothing. Especially your decision regarding a house purchase or to continue renting.

[JagLover]

dandarez said:

All going to plan then Mr Osborne?

Britain is now officially in its longest double-dip recession on record.

Britain is not in a 'double dip recession' but in a depression, as it has been since 2008.

Osbourne can't really do that much about it in the short term as the deficit is already massive, despite talk of austerity and monetary policy is very expansionary.

The only thing the colaition can do is supply side reform, but the Lib Dems are putting a stop to most of that.

Bear in mind that much of the 'growth' of the Labour years was illusionary based on debt (both public and private) and a housing bubble, the record on private sector employemnt shows the true growth of their time in office.

[johnfm]

Well, I don't think there exists a god given right to economic growth.



In fact, I think a few more months/years of ststorm might wake the sleepwalking majority into action.

It seems like everybody just expects earnings growth, increased productivity, etc as if it is the 'natural state'.

Yet most businesses I have worked in seem to work very hard to maintain modest growth in sales, revenue and profit. If businesses have to work at, why does an entire country seem to think it will ' just happen'.

Good wake up call if you as me. It will sort the wheat from the chaff - especially as this 'austerity budget' has hardly kicked in at all.

Maybe, just maybe, this or the next 'tax and spend' profligate government will finally wake up and smell the horse st and start investing its massive tax take instead of just spending it.

[Jinx]

plasticpig said:

The extra bank holiday didn't help.

Difference in number of Work days = -1.23% approx. Difference in GDP -0.7% doesn't that mean we're up?

[Digga]

johnfm said:

Well, I don't think there exists a god given right to economic growth.

And it is very dangerous to even talk about 'encouraging'lending to businesses or consumers in most cases. Granted, a bit more competition would be good and would also reduce the 'too bit to fail' risk, especially since the hamfisted government cut peoeple's options in one idiotic clusterfk when Lloyds & HBOS were codged together.

[JagLover]

johnfm said:

Well, I don't think there exists a god given right to economic growth.



In fact, I think a few more months/years of ststorm might wake the sleepwalking majority into action.

It seems like everybody just expects earnings growth, increased productivity, etc as if it is the 'natural state'.

Yet most businesses I have worked in seem to work very hard to maintain modest growth in sales, revenue and profit. If businesses have to work at, why does an entire country seem to think it will ' just happen'.

Good wake up call if you as me. It will sort the wheat from the chaff - especially as this 'austerity budget' has hardly kicked in at all.

Maybe, just maybe, this or the next 'tax and spend' profligate government will finally wake up and smell the horse st and start investing its massive tax take instead of just spending it.

Very true

There are many drains on the productive part of the economy. The growing welfare bill, rising energy costs from green measures and excessive regulation to name just three.

We have no 'right' to growth and it does not happen automatically but only by continuously maintaining our competitiveness in the world marketplace.

[DJRC]

dandarez said:

anonymous said:

[redacted]

BUT the thing is this drop, this large, was not expected nor predicted.
I hear they're blaming the rain now... and the Jubilee extra hol, ffs!
Like leaves on the line caused the trains to halt.

Wtf? Who wasnt expecting or predicting it???

It was nailed fking on!!! It has been discussed on here for the last few months! Good grief, SMEs have been screaming it from the rooftops. Who in the name of bo diddly "wasnt expecting it" ?

[Rude-boy]

Interesting.

Just spurred me to look at billing over the last 4 years and at this point of the year I have been within 2% of par to achieve target for the year, the target obviously only having gone up.

[Caulkhead]

dandarez said:

All going to plan then Mr Osborne?

Britain is now officially in its longest double-dip recession on record.

Edited by dandarez on Wednesday 25th July 10:12

I've run my own business for nearly a decade now. If I ran it badly for thirteen years, would I expect to be able to turn it round in two years during a global recession and with the imminent failure of the euro hanging over me?

Not unless I was daft I wouldn't.

[johnfm]

Jinx said:

plasticpig said:

The extra bank holiday didn't help.

Difference in number of Work days = -1.23% approx. Difference in GDP -0.7% doesn't that mean we're up?

you would expect the calculation of this to take into account fewer working days in the period, no?

[Murph7355]

johnfm said:

you would expect the calculation of this to take into account fewer working days in the period, no?

Not really as they're outright figures.

If they were "seasonally adjusted" then maybe...

[Digga]

johnfm said:

Jinx said:

plasticpig said:

The extra bank holiday didn't help.

Difference in number of Work days = -1.23% approx. Difference in GDP -0.7% doesn't that mean we're up?

you would expect the calculation of this to take into account fewer working days in the period, no?

Also you have to consider that despite the actual additional holiday only being one day, the net effect for many firms was a week shutdown.