Friday, January 7, 2011

Service Sector Shrinks Along With Construction Sector

The economic outlook for this country is dire and this is before chancellor George Osborne's cuts start to really bite and the rise to of VAT to 20% starts to have an effect.

"The CIPS/Markit suggested that only a strong performance from manufacturing stopped UK output falling in December.
The headline gauge of activity in the service sector – which accounts for the bulk of national output – flashed warning signs of recession when it dropped below 50 for the first time since April 2009".

The construction industry is also contracting and the government is slashing spending in the public sector and forcing hundreds of thousands of people out of their jobs
 The only thing keeping this country from slipping back into recession is manufacturing and exports, what happens to the UK if this starts stalling? As it is for Osborne's unprecedented gamble with the economy to work, we need manufacturing and exports to pick up well beyond where they currently are and there is absolutely no sign that this is going to happen any time soon. This is why Osborne bailed Ireland out for £10bn, it was like paying them to buy our goods so his economic policy would not collapse.

Why is the Tory government cutting spending and forcing thousands on to the dole at a time when the economy cannot take the pressure?

If the government had continued with Labour's schools for the future programme, then at least the construction industry would be kept steady.
We are hundreds of thousands short of affordable homes in this country, why has the government cut back on the building of new homes? Why doesn't it commission the building of affordable homes?
This is just  two ways the government could keep the British economy ticking over and provide growth.

This government is acting with gross negligence and incompetence the like of which has never before seen in the history of this country, marauding about like a load of bullyboys.

The only reason this country enjoyed stronger growth than expected and things were looking up for the first few months of this government is because of the measures the Labour government installed into the economy, now that is all coming to an end, we are getting a glimpse of what it is going to be like for the next at least 10 years.

This country is once again teetering on the edge of a huge recession, if not depression and they will not be able to blame labour then, although I have no doubt they will try!

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