The current position of the UK economy reflects both positive and negative figures. These figures have a dramatic effect on some sectors and a subtle effect on others. The current climate of the world economy is characterized by change and volatility. Markets open and then disappear but new markets also emerge. This is the current scenario.
While we may not understand fully the effects of the increase or decrease in national figures what we may see is the effect. An example is the weakening of the currency. If the Pound loses its value by a certain percentage it directly affects the prices of oil and prime goods. Consumer goods increase in prices together with prices of petrol.
The Pound is Losing Value
The picture of the pound in the UK economy is that it is losing value in relation to other currencies. The lost value is not significant but the effect is various sectors of society may be unpredictable. Imported raw materials may increase triggering increases in manufactured goods. Other areas of the economy may be affected also.
On the other hand, a weaker pound may strike back at exports. Export prices will become cheaper and will create demand for UK made products. The products have a worldwide reputation of durability, excellent design and exemplary workmanship. One value lost in one area may be a gain in another area. That is how it goes with economics.
Manufacturing is Weak
The manufacturing in the UK economy is experiencing a weakening due to the onslaught of competition from the Euro Zone. Product costs in the Euro Zone have become cheaper making locally made items more expensive than the competition. The wages on the UK are also much higher attributing to higher labour and production cost. Even with this set back, exports in manufacturing products will continue to provide the necessary balance.
National Growth Rate Up
The UK economy looks rosy on the national growth rate segment. The rate is up by one percent. This means that inflation is checked and that industrial sector may move up anytime. This also means that locally made product may rise in cost by a very small percentage. There is probably no price increase to speak of.
With the unemployment rate down expect more cash in circulation. The retail sector will be alive with people having money to spend during the weekends. When the unemployment rate is down, most of the citizens are in a joyful mood. There is less stress to people caught in traffic and in other busy area. Summing it all up, the UK economy may not be at its best but the picture is bright.