Growth in Britain is slowing before austerity even hits…
This is too rich – so to speak.
The economy of Great Britain is already headed into the swamp, and the existing Keynesian-stimulating budget deficit is scheduled to be reduced. As a result, Britain should already be well under water when the full impact of Hurricane Austerity slams the economy.
The consensus forecast among economists is for the data to show the UK economy grew at 0.4 per cent in the third quarter, down from the 1.2 per cent rate registered in the second quarter.
However, the range of forecasts range from a quarterly contraction of 0.2 per cent to growth of 0.8 per cent highlighting the uncertainty surrounding the UK economy.
Data for July and August suggested that industrial production grew by around 0.5 per cent in the third quarter, just half that achieved in the second quarter. Meanwhile, the survey evidence indicates a relatively modest service sector expansion in the third quarter.
Howard Archer at Global Insight says the figures will show the pace of recovery witnessed in the UK economy in the second quarter will prove unsustainable, given signs that consumer spending is coming under pressure.
Furthermore, analysts argue that worryingly for the UK economy, this slowdown will have occurred before the full impact of the fiscal squeeze announced by Mr Osborne is felt.