Markit: New year recession possible

Thursday, 24 November 2011 12:41 PM

Chris Williams, chief economist and director at economic research organisation Markit, comments on data confirming third-quarter growth of 0.5%:

"The underlying trend is one of a recovery that is rapidly losing momentum.

"The PMI surveys suggest that economic growth may have stalled in the fourth quarter. Household spending was unchanged in the three months to September, and exports fell 1.0%, highlighting the lack of growth drivers at both home and abroad.

"Domestic consumer confidence remains firmly in the doldrums, due to rising unemployment, high inflation and austerity measures. Businesses are meanwhile growing increasingly worried by the darkening economic outlook at home and abroad, cutting investment and reducing headcounts.

"The eurozone's debt crisis appears to be driving the region back into recession, and the UK may well be dragged down as well due to the impact on exports, bank lending and general uncertainty.

"Unless the situation in Europe changes for the better soon, the UK looks to be on course to slide back into recession in the new year."

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• autumn statement
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• double dip recession
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• economic recovery