Ernst & Young ITEM Club: UK economy will stall until 2013

16 April 2012
  • Theme(s):
Growth is dependent on big business spending its cash

In its Spring 4-year forecast, the ITEM Club says that while monetary policy has probably saved the UK from a double-dip recession, it expects growth of only 0.4% this year.

ITEM says that what the economy needs now is for UK companies to invest their substantial cash reserves. The strong recovery in the US is partly due to buoyant business spending, whereas in the UK investment has fallen to 12% below its 2008 level and investment intention surveys suggest it is likely to rise little this year. While ITEM is hopeful that export growth to countries outside Europe will support the economy, prospects for households, jobs, wages and consumer prices remain sombre for this year.

Follow this link for the press release (opens in a new window)

Follow this link for the Forecast headlines and projections (opens in a new window)

Visit the Ernst & Young ITEM Club website for more information (opens in a new window)

 

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