Just to make everyones day a little more rosey!
Lehman Brothers say the UK economy is likely already in recession
08 July 2008, 09:21:34
Britain is edging closer to recession, economists warned yesterday, after two bleak reports showed that activity in the country's vital services sector has slumped to its lowest level since 2001 and the credit squeeze on businesses is worsening.
A UK recession is now more likely than not, according to Lehman Brothers. In the stock market the FTSE 100 fell 67.8 points to 5,358.5 in early trading - a fall of 20pc since last June and into bear market territory - before recovering to close up 50.3 at 5476.6.
Stock market historian David Schwarz said: "History tells us that long bull markets in the UK are virtually always followed by bear markets where shares fall by at least 25pc."
Lehman Brothers joined those predicting an economic slump. Peter Newland, the bank's economist, said recession this year is "more likely than not" due to the "broad-based contraction in activity". His comments were echoed by Capital Economics, which declared that "the economy has ground to a halt [and] seems to be heading for recession".
Full story at The Telegraph