A Third of FS Practitioners Believe UK Faces a Double-dip
Over a third of financial services (FS) practitioners believe the UK faces a double-dip recession, a Chartered Institute for Securities & Investment (CISI) survey shows. The poll was conducted on the CISI website, following news that the UK economy shrank by 0.6% in the last quarter of 2010.
Comments from among the 36% of respondents who fear a double dip included “rampant inflation will reduce consumer spending and the inevitable interest rate rise will be the final nail in the coffin.”
Another contributor said: “I’m not sure what branch of economics the coalition government is following. I’m unaware of any theories that suggest an aggressive reduction in government spending, reduction in jobs and general uncertainty about the future leads to increased GDP.”
Arguing against such a downturn, many respondents said that the shrinking of the economy in the last three months of 2010 was a one off. One said it was “a weather-related blip only”, while another said: “Trends matter, not isolated figures.”
More than 400 people took part in the survey.