''Green shoots'' have led to over-confidence of economic growth
04 September 2009
While a number of recent statistics have pointed to an end to the recession, confidence of growth is premature.
That is the opinion of Defaqto economist Michael Baxter who was speaking following the release of data by CIPS/Markit UK Manufacturing PMI which revealed the sector had fallen back below neutral after a month of growth.
Mr Baxter believes that there is a "possibility" that talk of an end to the recession has been "exaggerated".
He said: "I think some of the talk of green shoots over the last few months have been a little exaggerated; the stock market''s performance has exaggerated things. People have let all this good news run away with itself a little bit.
"I am not saying we are going to have another recession but we are not going to have a boom like we had a few years ago, I don''t think that is going to happen for quite some time."
Revised figures released by the Office for National Statistics on August 28th showed that Gross Domestic Product posted a fall of 0.7 per cent in the second quarter of 2009.
By Christian James
Useful Links and Frequently Asked Questions
Loans
Debt Management
Financial News
Faq's