so Georgie Boy, by increasing consensus, really doesn’t have a clue what he’s doing

hands up if you’re surprised?

So city firms are forecasting lower growth. This is not evidence that they think the deficit reduction strategy is wrong!

It is no surprise that when deleveraging is required on a massive scale that growth slows – it is unavoidable.

@2 – No growth, no deficit reduction. How many times does this need to be repeated before you realise this?

And growth is slowing because consumer confidence is in the toilet. THAT is where the issue lies, and inflicting further pain will lead to even more decline.

@3 precisely so. People are not spending because they don’t have enough money now, and are likely to have less in the immediate future. So businesses are tanking.

it doesn’t take a Nobel Economist to work it out.

the supreme irony is that Osborne is having to borrow *more* to cover his losses, meaning that the deficit may increase under his plans. Which part of this isn’t obviously stupid and wrong?

I don’t think many City economists had much faith in Mr Osborne to begin with. However, it must be said that they do broadly support the deficit reduction strategy. Where they take issue is in the inadequacy of other measures to offset the deficit reduction. I am not sure about how fair it is to blame Mr Osborne for the IMF reduced forecasts for growth next year. That really goes beyond the UK economy and is about a deteriorated international outlook. For example, out of the five big European economies, UK, Germany, France, Italy and Spain. The IMF are forecasting the fastest growth to be in the UK next year.

Leon, No matter how many times you say it doesn’t make it true.

Is it really syrprising consumer confidence is low? Do you want consumers to be told the economy is great, everything is fine when clearly it isn’t?

@6 – If it was only me saying it, sure. It’s not.

And you’re deliberately pushing DOWN consumer confidence then?
…
You know, I didn’t think it was possible for you to act any worse, but…

@Fungus

with respect, you seem to be missing the point of the argument.

the problem is not consumer confidence in the current economic conditions, but confidence in the Governments plan to *improve* conditions, which is low and dropping. It’s dropping because Osborne’s plan clearly isn’t working, and the Bankers are absolutely getting away with it. Worse, they’re actually getting it easier.

because all the bankers have to do is say ‘mmmm.. nope, we’re not ready yet’ and the Chancellor does nothing. Except lay more cuts and taxes on the poor – which currently constitutes a fairly high percentage of the population. Who then spend even less.

@9 SvdW,

Surely the perception of the economy is a primary driver of consumer confidence? No doubt you will argue that the Govt should carry out some sort of a stimulus program which indeed probably would boost consumer confidence – I don’t believe that is the right thing to do and agree with Peter Schiff in his testimony to the house of representatives:

http://www.europac.net/commentaries/how_government_can_create_jobs

Should consumers really be spending when they are already heavily in debt?

What exactly is it that bankers are getting away with?