Monday, 23 October 2017

Recession Watch Pt 2

I'm moving the RecCon meter to level 2. Although I'm not completely sure we're not already at level 3. Let's be cautious though.

From the weekend's papers, we find that investment in the UK motor industry will halve this year.  Last week Sainsbury's announced job cuts of 2000 and IWG (formerly Regus), the purveyor of rented offices to the self-employed and small business sector announced a massive profit warning and shares dived 35%.

Today, profit warnings from more UK companies including Pendragon, the car retailer. 

With inflation at 3% and chugging north, Carney sitting on his misbegotten hands, and Brexit talks circling the drain there's no good news on the horizon. Where's the extra money going to be found for people to spend? Pay packets on the decline (not even remotely keeping pace with inflation) according to the latest stats from the ONS.

We are at the beginning of a maelstrom of disaster by the looks of things. Brexit caused or not, it increasingly looks more difficult to make as much money as last year. Which means less to spend in the real world.