A False Hope?

Huzzah!!!

For people who have read the latest on our economy's progress would have by now realised that our disappointing 0.7% contraction in the economy was actually miscalculated, it's now at a slightly better 0.5% this is due to economists estimating the construction sector wrongly, it was higher than previously calculated leading to a smaller contraction than previously estimated.

This does not mean that the economy is getting any better though, the bank holiday we just had didn't help much either with GDP taking away roughly 0.5%. Some blame the recession on the severe spending cuts that the government has implemented but regardless of the slow growth in the economy it is not all bad.

Compared to two years ago the deficit has been reduced, inflation is down and there are more private sector jobs, but this has led to some questioning as to how unemployment is falling when the economy is shrinking, one reason is that there has been a move to part-time work which has affected the productive capacity of the economy.