Buxton: Why UK double dip is irrelevant

Schroders' head of UK equities Richard Buxton said the UK's much-feared double-dip recession is ‘irrelevant' and not cause for panic.

Urging investors not to set too much store by the Q1 GDP figure released last week showing two consecutive quarters of economic contraction, Buxton said the UK will experience a period of zero growth before it eventually ‘muddles through’.  “The UK is basically flat-lining either side of zero. The nuance of whether it is slightly positive or negative is irrelevant,” he said. Buxton said there are a number of encouraging signs in the economy, including less of a squeeze on real incomes as inflation falls away. He said the most recent CPI figure, which saw a surprise increase from ...