Don't Let the Headlines Become a Reality

Summary


I'm not the first to consider where the economy is headed in 2008. The papers have been full of opinion, trends, analysis and speculation for weeks. Given the column inches dedicated to the subject you'd think there might be a consensus, but views are still divided. Economists are agreed that there will be a slowdown, but the question remains: how slow, and how far down?

In its last quarterly economic forecast (December 17), the CBI put 2008's annual rate of GDP growth at two per cent. This was the third quarter running that the CBI had downgraded its forecast for UK growth in 2008. The downgrade was largely due to continuing credit market difficulties, record oil prices and weaker domestic and global demand.

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Extract


Don't Let the Headlines Become a Reality

Consumer confidence is weaker as a consequence of the uncertainty in the financial markets. Of immediate concern is the housing market.

Approvals for mortgages are a good litm...

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