Economists are worried that more bad weather extended into the early spring months could increase the risk of a triple dip recession. Chief UK economist for Global Insight, Howard Archer, stated that bad weather is always bad news in the UK economy and the last tide of bad weather that just hit is really bad news for an economy that is already fighting an uphill battle to prevent contraction again.
Archer went on to say that how much the economy is affected by the newest snowfall is going to depend heavily on how long the snowfall lasts and how wide of an area is affected. Retailers feel the impact on the snow not only because people do not come out to the shops to make their regular purchases, but also because bad weather oftentimes disrupts their supply chains causing even further delays.
This week the third estimate of the GDP from the last quarter of 2012 is due to be announced and it is expected that the economy will have shrunk again. If it shrinks again during the first quarter of the year then a recession will have occurred once again.
Many consumers are worried about the new changes to the Budget and feel that this will lead the UK into a triple dip recession. About 45% of people surveyed by uSwitch.com stated that the country will be worse off by following the new budget. Another 37% reported that they think middle class families are probably going to be hurt the most.
Personal finance expert Michael Ossei from uSwitch.com stated that small businesses and home buyers alike should be happy to hear the news about the budget but like a great deal of England they have been stuck in the mud because the Government simply is not doing enough to help with the new high costs of living.