UK Economy continues to contract

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The UK economy contracted 0.8% between April and June, more than double the figure economists had expected.

Nobody said recovery was going to be easy and a bumpy road has always been on the cards, but you can't help wondering if politicians have been trying to put a positive spin on recovery when Labour were under unprecedented criticism? The Treasury had predicted a return to economic growth by end of year. Conversely the economy is still shrinking, with a contraction 0f 2.4 % for the 1st quarter, against a prediction of 0.3%. Quite a significant difference when you consider the sums involved.

This is worrying though because it means it will be harder for the treasury to balance its books, making the deficit greater and available funding for public spending even less.

Evidently a recovery isn't around the corner, and we need to be prepared for longer recovery, paucity of expenditure, and with tough times still ahead for sometime. In other words take nothing for granted and play a cautious game