Britain already in Recession?

Lord Mandelson the UK Business Secretary has warned a “contraction” was to be expected, but it is impossible to know how long it would last, and that the UK is on the brink of recession.

The news came just before the official figures that will show the first quarter of “negative growth” for over 16 years.

If the same contraction goes on for a second month, then Britain will officially be in recession. However the Ernst & Young ITEM club reported that the British Economy was already in recession, and that it will downsize by 1 percent next year. In the report it said that until 2010 house prices will still continue to fall.

As the employers continue to cut costs the report also predicted that the by the end of 2009 the unemployment figure could reach 2.2 million.

The average new home seller in England and Wales has now been reported at £229.691, this followed the first 1 percent rise which is the first rise for 5 months.

Source: ukgoogle