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UK OPENING NEWS INCLUDING: UK manufacturers focus on exports as economy struggles

Last updated: 04:13 11 Jul 2011 EDT, First published: 03:13 11 Jul 2011 EDT

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Hundreds of billions of pounds of additional debt will appear on the government’s books on Wednesday when the Treasury publishes accounts drawn up on the same basis as those of companies. (FT - More) The main change will be to include the future liabilities of already accrued pension rights for teachers, police and the NHS on the same basis as in the corporate sector. This is likely to add at least GBP 800bln and probably closer to GBP 1,200bln to the estimate of current government liabilities, depending on the discount rate chosen in the estimates.

The British Chambers of Commerce (BCC) today added its voice to the growing chorus of concern about Britain's faltering economic recovery. (Independent)

The body, which speaks for privately owned businesses, warned the pace of the recovery had slipped back during the second quarter of the year, and that while the Government's austerity drive was necessary, ministers had failed to come up with a credible plan for generating economic growth. The BCC said it believed the British economy had grown just 0.3% during the three months to June. 

Business confidence is at its lowest for two years according to a report from accountants BDO. (Guardian)

So far the manufacturing sector has been a key driver of the economy, but in the past four months BDO's optimism index has tumbled by 26 points to 90.1. On top of declining demand at home, as the coalition's tax rises and spending cuts take hold, firms are facing a slowdown in exports, especially to the eurozone, as it struggles with its sovereign debt crisis.

UK manufacturers focus on exports as economy struggles. (The Telegraph)

According to a new survey by the Construction Products Association (CPA), the number of manufacturers exporting goods increased by 18% in the second quarter compared with the first three months of the year.

WEEKEND PRESS:

Tax rises and spending curbs hit GDP growth as economists predict that the chancellor’s plan to reduce the deficit is likely to fail. (Sunday Times) 

JP Morgan predicts that GDP remained flat over the period. While other banks, including Royal Bank of Scotland and Barclays, believe the economy may have continued to expand, all economists have cut back their forecasts.

 

The Office for Budget Responsibility (OBR) still expects UK GDP to grow by as much as 1.7% this year, but City forecasters now believe the economy will expand by as little as 0.3% between April and the end of June and may slow further in the months ahead. (Sunday Times)

 

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