Very strong +0.8% growth in Q3

The credit rating agencys were threatening to downgrade our rating from AAA and we were paying similar interest rates on our bonds so we weren't that far from being in serious trouble. Admittedly our economy is more robust than some of the Southern European economy but the markets did need reassuring.

Just a small point. We are at war. This is not peacetime. There is/was unexpected cost there too.

The largest deficits have been experienced in all the economies in the Western world, yes, however we are not Greece. Or Ireland. The positioning of the UK being like Greece and Ireland by our own government was quite sad, but ultimately very dangerous and short sighted. It has destroyed consumer confidence. That was all a little weird for me.

I would never say that cuts are not necessary to tackle the deficit. I would however not disproportionately aim them at the poor and women/kids. And I also would not have ring fenced the NHS ( lets not forget that the Tories are actually going to SPEND on the NHS by bringing in their ridiculous ideological and based on no evidence of increased productivity reorganisation )

longfingernails I don't think we can cut the NHS due to the demographics of the population. We have an ageing population that will put pressure on the NHS to improve efficiency within it. Health is also unique in that innovation tends to push costs up rather than bring them down.

And of course the cuts aren;t political....

Well if you aren't cutting back your spending on Christmas we'll all be fine won't we... (I will as I am not sure I'll have a job after January..)

Lady I'm not a Tory but the facts are that this is the largest deficit we've ever had in peacetime and that we cannot ignore it otherwise the bond and currency markets will crucify us.

I agree with you about consumer confidence being too low but hopefully the uncertainty regarding where the cuts would be made has gone then it may pick up a little.

Consumer confidence is at rock bottom since the government started to tell everyone we are verging on bankruptcy and in the worst situation ever and ever amen.

That is what you Tories never mention. It is the white elephant in the room apparently

Unfortunately all the hard measures you talk of are nothing without consumer confidence

I don't think a double dip recession is going to happen but growth may be quite low for a few years as the cuts in public spending take effect. However the cuts are essential to maintain investor and market confidence or we could end up with a greek style firestorm and the loss of our credit rating.

The NHS is not a money making machine and cannot be compared to private sector companies

And if so, why have the Tories not cut spending in the NHS?

I think todays growth figures are very good when you consider this is the highest amount of growth in this quater for the last 10 years. One thing that does worry me for the future is inflation it is too high and it has been too high for the last couple of years and this could cause problems further down the line.

even your beloved times only says it "fuels hopes" of avoiding a double-dip recession,not that it dosen't mean it won't happen.

You sound like a conservative party political broadcast......

"LadyBlaBla Cuts stimulate growth by boosting productivity and by getting rid of the dead hand of the State"

What evidence do you have that cuts stimulate growth? You can't just say it and expect it to be true.

Lady B

To quote my earlier post:

"It appears to be the biggest q3 growth in 10 years"

The point being that Osborn's first round of cuts haven't (yet) killed economic growth. But it's early days and you can always hope .

In the last week retail sales were reported to have disappointed by coming in 0.8% lower than expected in September.

It is very likely that the UK will go into a recession again in Q1 2011 with public spendng cuts. The consumer is 70% of the economy so retail sales matter. At best the economy is bumping along the bottom.

Last quarter there was growth of 1.2%. This quarter was 0.8% growth

What is there to celebrate? I have missed something obviously

And despite the fake celebration, haven't the government been telling us that the country is fucked and thus the dire need for cuts - which apparently are going to stimulate growth. Still not sure how cuts stimulate growth but hey ho, all very confusing.

There will be another boost to trade in the final Q of 2010 as consumers bring forward purchases to beat the January VAT rise. Manufacturing industries are still re-stocking. Sterling is weaker against Euro at the same time and many of the Eurozone countries are picking up. Interest rates are still historically low. Private sector is recruiting again having shed workers in the 2009-10 period. Public sector job-losses are being staggered over four years and a lot can happen in that time. I think there's more to be optimistic about than in the recent past, quite honestly.

"really doubt the Chinese and Indians would come to us for any kind of services, they have no shortage of well-educated people."

there are things beter done by the UK than China (don't know about India) - it is a dictatorship and there are services simply unavailable there - particularly in financial services. the company i work for has Chinese clients (that supply UK companies) for that reason.

i was listening to the radio and the weakness of the pound has served to boost exports.

also, there was a long hot period in july and that always serves to boost spending.

I'm hoping this will be the end, or at least the beginning of the end. I had forecast 5 years of downslide - in 2007. still looks a bit on the optimistic side though.

The growth figures are reasonable but no better IMO. I've got to disagree with dizietsma though we really need to push into emerging markets in the world economy such as China and India as the emerging economys are in far better shape than the established economys eg USA. We need to maximise our exports into these markets if we are to get growth in the next decade.