The British Economy Begins to Feel the Heat of the Ukraine Crisis

Data has recently arisen to provide evidence that manufacturers in Britain have suffered a serious slowdown. The stutter in the British economy seems to have come as the crisis in the Ukraine has started to show signs of impacting the UK. The monthly measure of business numbers in UK factories hit an all-time low recently, sparking fears amongst experts that the economic growth of the country is beginning to fall down once again after a celebratory first half to the year, which had left Britain looking strong.

Data has recently arisen to provide evidence that manufacturers in Britain have suffered a serious slowdown. The stutter in the British economy seems to have come as the crisis in the Ukraine has started to show signs of impacting the UK. The monthly measure of business numbers in UK factories hit an all-time low recently, sparking fears amongst experts that the economic growth of the country is beginning to fall down once again after a celebratory first half to the year, which had left Britain looking strong.

Manufacturing surveys that were carried out throughout the Eurozone, the main trading partner of the UK, provided a worrisome image of diminishing confidence and deteriorating demand within the continent. The news on pressure for exports in the UK has led to some discomfort in the government, who had hoped that the economy was beginning to rebalance away from domestic consumer demand, and more towards trade overseas.

The Latest News on the British Economy

Data provided by the Bank of England has shown a large increase in lending towards consumers throughout June, from a number that fell around the £655 million mark in the previous month, to over £1 billion in July, providing a greater degree of support to individuals warning that the UK is too reliant on household spending.

The report on manufacturing has also pushed back expectations of when interest rates may begin to rise from the record, all-time low, with many analysts now suggesting that 2015 may be the earliest possible date for an increase. A closely watched poll referred to as the ‘Markit/CIPS UK manufacturing PMI’, has shown that orders, job creation, and factory output have all fallen from recent highs, and export orders are at their slowest pace in five months. A senior economist, Rob Dobson, has said that the information shows increased evidence of the uncertainty of the global market, especially in regards to business confidence and economic growth in the Eurozone.

Manufacturing, which currently makes up approximately a tenth of the British economy, had rebounded well earlier this year, however it still remains below the pre-crisis levels. Expert economists for the country have claimed the latest report reflects other business surveys which have suggested that growth would struggle and begin to slow over the second half of the year.

England needs to lower its Taxes

Many people believe that England’s taxes are too high and they spend too much money on their health care system. They also have let in too many immigrants which are proving to not want to assimilate and even pose a safety risk to the rest of England.

Not a Rosy Outlook for England

Chief UK economist, Rob Wood, spoke about the risks that the UK will be facing as a result of the tensions in the Ukraine, stating that Russia’s escalation of the serious conflict has had a damaging effect on the marketing sector, internationally. Furthermore, he believes that the problems could begin to get even worse over the coming months, given the recent drops in confidence towards the exposed core of European economies. The developments that have occurred seem to suggest that a serious downslide may occur with economic growth, both this year and the next.

It is too bad the Russians were not taken care of in 1945 on the basis of General Patton’s suggestions. History would have changed for the better according to many historians.