The latest figures from Office of National Statistics have sent a shiver down the spine of most businesses. The GDP for the UK unexpectedly shrank in the final quarter of last year. The bad weather was blamed for the poor performance but even after stripping that out the economy was flat.
Previously many economists, together with the Coalition, had thought the UK had turned the corner and was emerging from the recessionary gloom. Suddenly a ” double dip” recession could become reality.
Business confidence has been knocked by these latest figures and it is hard to see how the private sector will make up for the jobs cuts proposed in the public sector. Occupational demand in the property sector will remain subdued.
BrayFoxSmith comments that at a macro-level this is disappointing but at a micro-level there are business sectors and specific locations that are seeing continued activity and interesting opportunities arising from that in a purely property context.