Fears are growing that Britain's manufacturing sector could be sliding back into recession after a gloomy survey from the CBI.
The business group reported a sharp slowdown in orders in December, driven by a weakening of domestic demand, and found that expectations of growth have taken a hit.
Paul Dales, of Capital Economics, said that the survey was "the first to signal the possibility of a manufacturing recession". A recession in any sector is usually defined as two consecutive quarters of falling output.
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Friday, 14 December 2007
Sub-prime debacle is not the big story
What has been this year’s most important economic and financial story? Most people seem to agree that it has been the global credit crunch and the US housing crisis. However, in fact, this has been a sideshow compared with the far more important shift in the structure of global growth in favour of America, largely at the expense of Europe, including Britain. This shift was confirmed by the remarkably strong US GDP figures published last Thursday and is likely to trigger a substantial rebound in the dollar – just when cover stories in business magazines around the world are announcing the American currency’s permanent decline.
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Check out the rest of this blog here.
Financial Worry, Health, and the Reverse Wealth Effect As Housing Pops
It's been said that the difference between childhood and adulthood is financial worry. Children are of course troubled by family insecurity, but the gnawing weight of financial distress really eats away at the responsible adult(s).
As you have probably surmised, I know because I've been under extreme financial duress all too many times. (That goes with being self-employed in cyclical industries.) But financial worry can also arise from "death by a thousand cuts"-- small reductions in income and small cumulative increases in expenses which slowly work to bring household balance sheets into worrisomely negative territory.
The greatest source of stress is the loss of a loved one, followed closely by combat, divorce, the loss of one's job/livelihood/home/business, serious injury/illness and moving, i.e. "pulling up stakes and starting over." Unfortunately, the last three are intertwined with financial losses and worry.
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Check out the rest of this blog here.
As you have probably surmised, I know because I've been under extreme financial duress all too many times. (That goes with being self-employed in cyclical industries.) But financial worry can also arise from "death by a thousand cuts"-- small reductions in income and small cumulative increases in expenses which slowly work to bring household balance sheets into worrisomely negative territory.
The greatest source of stress is the loss of a loved one, followed closely by combat, divorce, the loss of one's job/livelihood/home/business, serious injury/illness and moving, i.e. "pulling up stakes and starting over." Unfortunately, the last three are intertwined with financial losses and worry.
more ...
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Check out the rest of this blog here.
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