Recovery may peter out

by Ed Bowsher on 26 May 2009  |  0 comments
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An economic recovery could be quickly followed by another slowdown.

Good piece in The Independent this morning. It argues that we may see a mini-recovery this year, but that could be followed by another slowdown.

Basically, the argument is that we'll see a modest recovery as manufacturing companies have to rebuild their inventories. At the moment, Honda isn't manufacturing in the UK as it gets rid of unsold stock. Eventually that stock - or inventory - will be sold and Honda will start manufacturing again. However, the economy will then be pulled back thanks to a lack of investment and a weak banking sector.

It's a really strong article which I think is bang on the money. Read it!