U.K. Business Outlook

September 17th, 2008 at 02:11pm Bob Trojan

Good news, bad news…good if you’re going there for business, bad if you’re exporting there…..

David Blanchflower, the arch-dove on the Bank of England’s Monetary Policy Committee (MPC), today forecast that the UK economy is heading for an “unpleasant shock” with unemployment set to spike in October.

Sterling fell to a two-and-a-half year low against the dollar as markets digested Mr Blanchflower’s comments, sending the pound down to $1.7460 — a level last seen in April 2006.

Speaking before the Treasury Select Committee, Mr Blanchflower’s “doom-laden view” of the economy included forecasts the UK would “see a large rise in unemployment”, to the tune of an extra 60,000 a month for “several months”.

Unemployment is currently running at 1.67 million, or 5.4 per cent of the population in the three months to June.

Read the rest of the story…http://business.timesonline.co.uk/tol/business/economics/article4730740.ece

Entry Filed under: Export, Economy