PARIS: A housing market in shambles, inflation at the highest level in years and signs that the economy is headed for, or already in, recession. Sound familiar? The British economy, like its counterpart across the Atlantic, has fallen on hard times, and in many ways the experience appears to be mirroring that in the United States. Indeed, the run last September on a British mortgage lender, Northern Rock, was one of the events that helped to embed the terms "credit crisis" firmly into the global consciousness. "A recession is more likely than not by the end of the year," Peter Newland, who covers the British economy for Lehman Brothers in London, said Thursday, summarizing a recent string of dismal economic data that have led economists to revise their growth forecasts downward. "Activity seems to be declining across the economy," he said. The FTSE 100, the benchmark London stock index, has fallen about 19 percent from the high of 6,732.4 that it hit in June 2007 - just short of the 20 percent decline that is commonly said to define a bear market. It gained 50.3 points, or 0.93 percent, to close at 5,476.9 on Thursday.
PARIS: A housing market in shambles, inflation at the highest level in years and signs that the economy is headed for, or already in, recession. Sound familiar?
The British economy, like its counterpart across the Atlantic, has fallen on hard times, and in many ways the experience appears to be mirroring that in the United States. Indeed, the run last September on a British mortgage lender, Northern Rock, was one of the events that helped to embed the terms "credit crisis" firmly into the global consciousness.
"A recession is more likely than not by the end of the year," Peter Newland, who covers the British economy for Lehman Brothers in London, said Thursday, summarizing a recent string of dismal economic data that have led economists to revise their growth forecasts downward. "Activity seems to be declining across the economy," he said.
The FTSE 100, the benchmark London stock index, has fallen about 19 percent from the high of 6,732.4 that it hit in June 2007 - just short of the 20 percent decline that is commonly said to define a bear market. It gained 50.3 points, or 0.93 percent, to close at 5,476.9 on Thursday.
The retailer Marks & Spencer sent shockwaves along the high street and across City trading floors yesterday when it warned that sales and profits are tumbling as consumer confidence evaporates.More than £1.25bn was wiped off the stock market value of the food and fashion group after the retailer became the first big store chain to show the full extent of the damage caused by the economic downturn. Shares dived by 25% to 240p, their lowest since 2001. Little more than a year ago they were changing hands at more than 740p and the company was valued at nearly £12bn. Last night it was worth barely £4bn.Sales of M&S clothing over the past three months are down 6.2% on last year's levels. Food sales are down 4.5% at a time when supermarket sales figures should be being helped by rising inflation.M&S chairman Sir Stuart Rose said: "This is the fastest and most serious downturn since the early 1990s. We have a very unpleasant set of economic circumstances."He said people were shopping locally rather than at out-of-town shopping centres to avoid using petrol, and trading down to bargain retailers to cut the cost of their shopping bills. "People's purses are being squeezed," he said. "A seismic shift [in shopping habits] is going on."
The retailer Marks & Spencer sent shockwaves along the high street and across City trading floors yesterday when it warned that sales and profits are tumbling as consumer confidence evaporates.
More than £1.25bn was wiped off the stock market value of the food and fashion group after the retailer became the first big store chain to show the full extent of the damage caused by the economic downturn. Shares dived by 25% to 240p, their lowest since 2001. Little more than a year ago they were changing hands at more than 740p and the company was valued at nearly £12bn. Last night it was worth barely £4bn.
Sales of M&S clothing over the past three months are down 6.2% on last year's levels. Food sales are down 4.5% at a time when supermarket sales figures should be being helped by rising inflation.
M&S chairman Sir Stuart Rose said: "This is the fastest and most serious downturn since the early 1990s. We have a very unpleasant set of economic circumstances."
He said people were shopping locally rather than at out-of-town shopping centres to avoid using petrol, and trading down to bargain retailers to cut the cost of their shopping bills. "People's purses are being squeezed," he said. "A seismic shift [in shopping habits] is going on."
British economy falling into American-style slump
I think an American-style slump will look pretty good from Britain's perspective before all is said and done. Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
