Well, it may be Autumn, but it is still just early Spring, economically. Whilst we have seen some green shoots of recovery, those shoots stem from some slightly dodgy ground! There have been some decent increases in the manufacturing and service sectors, the number of first-time house buyers has increased by 45% (from a very low base, admittedly) and unemployment is decreasing – with a startling 67% increase in construction and property jobs leading the way. However, recent figures show that the average starting wage for new employees is £8 per hour, not dramatic information in itself, but 6 years ago that figure was £8.50 and inflation has averaged a little over 3% per annum, over that time. In addition, for the first time in years, credit is increasing, with the finance for purchasing second hand cars increasing by 18%. Household re-mortgaging has also increased substantially too. The last thing that the UK needs, is a credit-driven boom; we have seen too much evidence of such activities, in the past, and such recoveries tend to be built on sand, particularly in a climate of wages that are decreasing in real terms.
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