Dip or blip
30 October 2010
It seems likely to me, that most of us in the UK, will have a difficult 2011.
House prices are falling again, even though interest rates are still at just half a per cent. Retail price inflation is still high, at fractionally under five per cent. Government cuts amounting to over £80 billion of savings over next few years, included scrapping the almost built 11 new Nimrod MRA4 (at £400 million each already). VAT increases to 20 per cent. Job uncertainty is still everywhere. Rail and tube fares increasing above inflation, as usual (even though speaking as a Londoner, the now continuous engineering works affect all our journeys, along with endless road works in central London).
I hope I'm wrong though, GDP rose by 0.8% in the third quarter of the year, so maybe I'm just over cautious and being a bit pessimistic.
Marabese