Published on : Wednesday, November 27, 2013
This economic update is produced by Roger Martin Fagg and you may find it useful. It is provided to the BCFA by JSA Consultancy Services.
There has been a recovery in consumer spending on cars, eating out, hotels and construction projects. This has been financed by debt, windfall gains from the mis-selling of employment protection insurance, and a reduction in the savings rate. All economic recoveries are consumption led; this one is no exception.
As it stands, the recovery is not sustainable – for sustainable growth we need average weekly earnings growth to move from the current 2.3% growth rate to 3.5% – 4%. We also need the Government to move towards a balanced budget, net exports to grow and a recovery in investment spending, however financed.
Tags: BCFA, JSA Consultancy Services, Roger Martin Fagg
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