Thursday, 3 May 2012

UK in Recession




Both UK manufacturing and UK service firms growth have slowed down in April. Export orders fell in the U.S., euro zone, and Asia for the UK manufacturing group, but employment for both the services industry and the manufacturing sector grew in April. The slowing of manufacturing growth will probably continue to slow even further with the infrastructure for their 2012 Olympic Games being completed and as the Olympics draw closer. However, not only the UK faltered though, as the Eurozone saw manufacturers decline throughout; Spain and Italy’s manufacturing are under the pressure of huge debts and decreasing orders. However, in Asia there has been increased production to meet growing demand, and the growth of U.S. manufacturing has increased as well, so it seems that the debt crisis in Europe is severely dampening its growth. India, South Korea, China, and Taiwan’s growth this month showed stronger manufacturing activity.

The Bank of England says that this year Britain’s economy should start growing this year, but Britain is back in recession because of two consecutive quarters of negative growth. GDP has shrank by .2% in this quarter, and Britain hopes for Eurozone stability in order to regain confidence among businesses and households.

-Evan Wang

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