UK suffers from disappointing industrial production data

National pride was dented when Germany and France posted positive economic growth in the second quarter yet the UK remained in recession. Since then the UK has suffered the ignominy of seeing expectations for the third quarter outturn scaled back as industrial production data disappointed.

The main concern, however, is less the recent past but what the future holds. Standard Chartered Bank forecasts economic growth in the UK will be just 1.2% in 2010 and 1.7% in 2011; these growth rates trail the US and are well below those of Asia and the emerging markets. It is far easier to grow revenues when the economy is growing quickly. For domestic UK businesses, therefore, the going is likely to remain tough in 2010. It will similarly remain challenging for those seeking jobs as a below-trend growth rate of 1.2% is unlikely to encourage mass hiring. That said, company cautio...