Monday, June 29, 2009

WOW - A Major U.S. Media Publication Reporting on a Dying Weed

Amazingly the WSJ is actually reporting on the dying greenery in the U.K. Now grant it, the news story is on page A8 of the WSJ, may have been cleared to be published because the story is not about the United States, and ends with multiple qualifies but it is more fair and balanced than normal. It's a start.

A suggestion that the U.K. economy was making a speedy recovery has fizzled, with recent numbers showing that banks still aren't helping businesses invest, and consumers still aren't spending enough to spur faster growth.

Data including retail sales, house prices and manufacturing orders had suggested that the recession-plagued U.K. might be moving faster in the right direction. The numbers helped trigger rallies earlier this month in stocks, bonds and sterling.

More recent figures, however, were a reminder of the recession's reality.

How many times have I talked about the inventory bounce

But Chief Executive Simon Topman says that rather than heralding an upturn, the increase reflects a nationwide phenomenon: Businesses are restocking after running down their inventories during the last lean year.

Other companies agree such restocking was a factor behind a 4.3% increase in imports in April. "This is a spike -- this is not the new business that will turn things around," Mr. Topman says.

and some bright points at the end...of course unfortunately you may just need to give it time.

Still, many economists and businesspeople agree the worst is behind Britain. As it wades out of recession, the U.K. can comfort itself with the knowledge that during the last downturn, in the mid-1990s, unemployment and interest rates were around or above 10% -- compared with current unemployment of 7.3% and interest rates of 0.5%.

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