UK economic data weakens

[sasguru]

UK economic data weakens, casting doubt on BoE rate hike talk | Reuters

Doesn't look like BOE can raise rates now. Problem is the US has a policy of "normalising" i.e. raising interest rates.
Which means the pound will plummet even further against the dollar and inflation will rise further as commodities are priced in dollars.

Or the BOE can raise interest rates regardless of the weak data.

Either way consumption - the primary driver of the UK economy - is going to fall.
Caught between a rock and a hard place.

I predict proper recession by next year or earlier - while the rest of the rich world will be growing.

[OwlHoot]

UK economic data weakens, casting doubt on BoE rate hike talk | Reuters

Doesn't look like BOE can raise rates now. Problem is the US has a policy of "normalising" i.e. raising interest rates.

The US has a policy of wanting to raise interest rates, but that doesn't always mean the same as actually raising them.

Which means the pound will plummet even further against the dollar and inflation will rise further as commodities are priced in dollars.

Or the BOE can raise interest rates regardless of the weak data.

Either way consumption - the primary driver of the UK economy - is going to fall.
Caught between a rock and a hard place.

I predict proper recession by next year or earlier - while the rest of the rich world will be growing.

The UK has a policy of raising interest rates to keep roughly in step with the US come what may. So maybe you're right.

[original PM]

UK economic data weakens, casting doubt on BoE rate hike talk | Reuters

Doesn't look like BOE can raise rates now. Problem is the US has a policy of "normalising" i.e. raising interest rates.
Which means the pound will plummet even further against the dollar and inflation will rise further as commodities are priced in dollars.

Or the BOE can raise interest rates regardless of the weak data.

Either way consumption - the primary driver of the UK economy - is going to fall.
Caught between a rock and a hard place.

I predict proper recession by next year or earlier - while the rest of the rich world will be growing.

Consumption is the only driver of any economy.

Every economy in the world cannot continually grow without a proportionate increase in population - and the world is getting fuller and fuller.

It will not be a recession - it will be much much worse than that.

Think of any of your dystopian sci fi futures and you will get the picture.

We should be happy to live in the times we do - I fear for my children unless we can expand limitlessly into the rest of the universe.

[BlasterBates]

In the mean time in spite of the Germans accepting over a million refugees within one year, peoples incomes rise, the government makes a surplus and is talking about reducing taxes because they're unable to spend it.

[northernladyuk]

Consumption is the only driver of any economy.

Every economy in the world cannot continually grow without a proportionate increase in population - and the world is getting fuller and fuller.

It will not be a recession - it will be much much worse than that.

Think of any of your dystopian sci fi futures and you will get the picture.

We should be happy to live in the times we do - I fear for my children unless we can expand limitlessly into the rest of the universe.

If only mankind could invent technology. Could you have a game of Civ5 and report back?

[BlasterBates]

Pound dropped again 0.5% , looks bad. Brexit car crash, Corbyn waiting in the wings to jack up taxes to eye watering levels.

[northernladyuk]

Pound dropped again 0.5% , looks bad. Brexit car crash, Corbyn waiting in the wings to jack up taxes to eye watering levels.

Just a bit of noise. Plenty more fun to be had in the middle game.

[edison]

Consumption is the only driver of any economy.

Every economy in the world cannot continually grow without a proportionate increase in population - and the world is getting fuller and fuller.

Nonsense. What about investment and innovation for starters?

Consumption can be a big driver in countries like the UK which typically has low savings levels and low investment levels compared to many other countries. We have one of the lowest levels of investment as a percentage of GDP of any major economy in the world.

[BrilloPad]

We have one of the lowest levels of investment as a percentage of GDP of any major economy in the world.

Not true! Look at the trains!

Oh wait. Train companies are owned by foreign governments. So UK invests in other countries rail networks....

[WTFH]

UK economic data weakens

Consumption is the only driver of any economy.

Only true if the only concern is consumerism.

How much we consume, how much we waste - well that shows how greedy & selfish we are, so when you mention children, you don't care about them because we MUST consume now.

If you want to fear less for your children's future, then work out how to consume less now.