Confounding the City's quasi-Cassandras

Article Abstract:

Many factors are worrying UK investors about the stock market. One is the fear of inflation and another is the increase in the amount of of new equity paper. This equity flow can probably be absorbed by the market. The 50% rise in share prices for the first half of 1987 can be attributed to the expectation of another period of political stability after the elections. However, strong credit expansion and a foreign trade deficit indicate early warnings of an overextended economy. World developments and the inflation issue will determine the future direction of the pound sterling. The UK economy is growing at a rate of 4% per year, and industrial profits are expected to grow by 20% in 1987. Productivity is growing at 6% currently and dividends have been increasing by 15% a year, but the latter should drop to 12% in 1988.

Foreign investments, Investments, Inflation (Finance), London Stock Exchange PLC, Inflation (Economics)

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An unhappy new year for British industry?

Article Abstract:

Economic forecasts for 1990 indicate inflation in the UK will decrease, but at the cost of significantly lower economic growth. The UK's manufacturing base is small relative to its gross domestic product and the country remains a net importer of goods, which aggravates the trade deficit. A sharp reduction in domestic demand growth will improve the currency account deficit but decreased consumer spending will lead to reduced investment and business confidence. Business will be forced to cutback investment to protect profit margins and as corporate profits decrease, workers will have to temper their wage demands.

Industrial productivity

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Profits: A fair wind for 1986?

Article Abstract:

An analysis of Britain's recovery from the 1981 recession indicates that consumer spending will be the strongest economic activity area in 1986, that consumer confidence should remain relatively high in Great Britain, and that unemployment levels should remain stable throughout 1986.

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