Economic review with falling house prices and stalling factories

In the current economic climate it seems as though the month of April revealed that the situation has become progressively worse.

Mortgage approvals continued to drop and a reduction in manufacturing led to a faltering economy which is stumbling aimlessly towards recession.

During last month, mortgage lenders granted 58,000 loans for house purchase which is the lowest since 1999 whilst at the same time the NTC/CIPS index, a survey of 600 manufacturers, fell to 50 indicating little or no expansion.

The survey found that weak domestic demand was the main driver, which overrode a slight increase in new export orders.

The UK’s largest lender to landlords, Bradford & Bingley Plc, fell as much as 32 percent after difficult economic conditions, which have seriously affected the buy-to-let market causing their market share to be drastically reduced.

UK manufacturing firms have continued to struggle in a period of no growth and high inflation.

It is the threat of surging inflation and loss in consumer confidence that will intensify the problem faced by the Bank of England as they attempt to suppress price pressures and maintain economic growth.

Story link: Economic review with falling house prices and stalling factories