Tag Archive for uk growth

UK Economic Recovery- Tech Driven?

The UK economy took a little breather in the last quarter of 2014, with economic growth slowing down across many sectors.  However there were exceptions which demonstrate that certain areas of the UK economy are driving forward the recovery with others relatively stagnant.

One of the most important surveys in the last few weeks is that of the KPMG/Markit UK report which tracks various economic indicators.  It is particularly interesting to monitor the performance of the UK technical sector and compare it with other areas.   The UK Technical sector has been of increasing importance to the UK economy for many years and it seems that it growing by the year, the last quarter of 2014 demonstrated the highest performance gap for the last 8 years.

The tech sector continues to outstrip virtually every other sector of the economy, with new business gains, new products and even allowing for slow cost inflation (which can often effect demand for technical products).  Many new product launches helped perhaps inflate this difference but it has also resulted in a higher investment spending across the sector.

This is of course important to jobs as well and there is evidence of substantial employment increases to help fuel this growth.   Employment in the IT sector is also traditionally fairly well paid and can contribute to other sectors and overall growth of GDP.  The outlook remain positive, although perhaps with some slight reservations along with the rest of the economy.

There is no doubt that the IT sector is becoming in increasingly important to the UK economy.  There is also evidence that the pattern of employment in the UK is diversifying from the traditional roles.  There is much evidence to demonstrate  that more and more people are becoming self employed or working across several roles rather than the standard 9-5 one company employment model.   It is important to develop these sectors as they typically create highly skilled, adaptable and well paid employees.

One area which has shown a huge increase is that of people who leverage the internet to provide their main source of income.  Many thousands of people now do business purely online, with virtual businesses contributing a small but growing contribution to the internet.  Digital products and services like this from Ireland are bought and sold all across the world, providing income for thousands.

Jane Hallins

http://www.anonymous-proxies.org/

UK Economic Growth is Fueled by Consumer Spending

There are not many convincing recovery stories across Europe yet, but the growth being seen across the UK economy over the last 18 months is genuinely encouraging.  Whilst most European countries hover around 0% growth rate and many looking at more recession, the UK economy seems to be moving forward.

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However there is a worry that this might not be a sustainable growth and the recovery is simply being pushed by increased consumer spending.  Today the news is filled with hysterical shopping scenes as the American ‘Black Friday’ promotion is embraced by UK retailers, seems to add more evidence to this idea.

The problem is that growth that is completely dependent on consumer spending is not sustainable in the long run.  UK consumers can’t keep spending to maintain economic activity, without incurring debts and following the road that partly caused the crisis in the first place.   The Japanese economy has seen this type of growth in the 80’s when consumers would routinely discard their TV sets every year in order to purchase the latest model.

The growth in the UK economy is also combined with falling exports to the eurozone and some measures suggesting business investment is falling too.  Trade has actually caused a negative impact on growth for the last quarter, which suggests that this consumption is partly causing UK imports to rise heavily too.

If the Euro countries where expanding too, then this wouldn’t be too much of a problem, with consumer spending merely providing some impetus.  However as exports fall to the doom laden Euro economies, consumer spending simply won’t be enough.  Much of the UK’s recovery has been based on austerity measures which means that the wages of these consumers haven’t been rising either.

There are some encouraging signs that wages are starting to increase but nothing dramatic.  If the recovery filters into pay cheques then consumer spending might be maintained in 2015.  There are some interesting articles on this situation in the UK economic press and online media, you can access some of these by obtaining a British IP address – here.

There’s not yet a crisis in the UK economic recovery however it desperately needs an improvement in it’s main trading partner’s economies – across the channel.  Until that happens, the recovery and growth may not continue.

Joe Simpson

Writer on technology, entertainment and economics.

Source:http://iplayerusa.org/index.php/proxy-to-access-bbc-iplayer-abroad/