U.K. Economy Faces `Serious' Recession Risks, BCC Survey Shows

[FarCenter]

By Brian Swint

July 8 (Bloomberg) -- Sales of services and manufactured goods in the U.K. fell in the second quarter, posing ``serious risks'' that the economy will tumble into a recession, the British Chambers of Commerce said.

An index based on a survey of 4,758 companies fell to minus 2, the lowest since 1992, from 17, according to the London-based lobby group. Another index tracking factories declined to minus 3 from 12, the least since the end of 2001.

``We are now facing serious risks of recession,'' David Kern, economic adviser to the BCC, said in a statement. ``The outlook is grim, and we believe that the correction period is likely to be longer and nastier than anticipated.''

Falling property prices, a dearth of credit and record oil prices are dragging down U.K. expansion to its weakest since the early 1990s. Bank of England policy makers, who meet this week, are gauging the risks to the economy from the fastest inflation in a decade, which prompted four of them to consider advocating a rate increase last month.

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http://www.bloomberg.com/apps/news?pid=20601068&sid=ac95eRDekqOo&refer=home

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The UK is in even worse shape than the US. That is where the innovative mortgages first started. Plus, during the Thatcher years, the industrial base was hollowed out even more than here, and the UK is relatively more dependent on "services", especially finance in London.

If there is a real financial collapse, it will probably start in London.

[DJ13]

1. You're right, they are an early warning sign for our own economy

[New Dawn]

2. So much for "Anglo-Saxon economics"

It is only good for the super-rich.