Another day,another report on the downwards slide of the economy.
Today roll up for Ernst and Young's ITEM Club which slashes UK growth predictions and warns: 'It's worse than we thought.'
The club has issued a report setting the UK economy’s 2011 growth rate at just 0.9 per cent, down from the 1.4 per cent predicted just three months ago and attributes the revision to the Euro crisis as well as the general instability in the Eurozone.
According to Peter Spencer, chief economic adviser to the Ernst & Young Item Club. ‘The bright spots in our forecast three months ago,business investment and exports - have dimmed to a flicker as uncertainty around Greece and the stability of the Eurozone increases.’
And it gets worse for 2012 forecasts have been slashed by almost half, from 2.2 per cent to to 1.5 per cent. The group also predicts unemployment will hit 2.7 million by the Spring of 2013.
As for quantitative easing,it says the latest tranche is unlikely to boost growth