The CEBR – Centre for Economics and Business Research, expects a shrink in the UK economy by almost 2.9% in the year 2009, which is more than any time ever since the 40s.

It also predicts a decline in the consumer spending and a slump in all forms of business investment. The forecasters also predict that the exporters will be helped by the fall in the pound’s value, however, their projection shall be held back by a global slowdown.

According to the CEBR’s research, the economy will contract by its biggest amount after the year 1946 where in the country was in the clutches of mass demobilisation after the wars. They also added that the economy is going through an agonizing readjustment as the consumers cut down on the spending because of ever increasing unemployment.

…read the rest of this entry»

Almost a 3 percent drop was noted in Dow Jones and Nasdaq indexes while London’s FTSE 100 index sank about 2.5% .Similarly, French and German markets each lost around 3%.

The results came forward when US data suggested mounting unemployment claims and sluggish shop sales.

The European Central Bank has shown 1.5% growth forecast in 2009, but now it cuts to 1.2%.

In the US, the jitters prompted after an ADP Employer Service report that showed 33,000 jobs cut during August. Weak sales during closely-watched back-to-school period also became the cause of anxiety in economic activities. …read the rest of this entry»