UK 'heading for new recession'

28 October 2011

New evidence has emerged that the British economy is heading for another period of recession in the near future.

According to figures published today by international market research group GfK NOP, consumer confidence in the UK slumped in October down to its most subdued point since February 2009.

The survey gauged positive sentiment among Britons at a level of -32, which represents a decline on the -30 recorded in September and a significant slump on the -19 posted in the corresponding period last year.

Recently, the Bank of England's markets director Paul Fisher told Bloomberg that its recent cash injection of £75 billion into the economy was warranted due to the "sufficient downward momentum" being felt in the UK.

And Nick Moon, managing director of GfK, agrees with this sentiment and urged the government to avoid relying on "people spending their way out of the double-dip recession that is likely to be on the horizon".

By Asim Shah

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