Vince Cable calls for caution on economy

07/08/2009

Vince Cable has played down recent hope of "green shoots" - and said that the economy is "not yet out of the woods".

The Liberal Democrat shadow chancellor called for caution after a raft of positive reports this week suggested that the recession could soon be at an end.

Manufacturing and service sector data, released separately, were the most positive for months.

Halifax also said that house prices had increased by 1.1 per cent in July - a sharper increase than had been expected.

However, the Bank of England announced yesterday that it was set to print more money than it had previously said was necessary, due to the recession being "deeper" than had been thought.

Commenting on the latest move - which will see £50 billion of extra cash created - Mr Cable said: "The Bank of England's actions are a clear signal that the economy is not yet out of the woods, despite some minor signs of recovery.

"With thousands of businesses still struggling to get loans, the Bank's decision to put more money into the economy is the right way to go."
Most recent government data on the UK's economic output show that the current recession is likely to be the worst in decades.

The economy was found to have shrank by 2.4 per cent over the first three months of the year - and by a further 0.8 per cent during April-June.

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Recent Graduate Debt,

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