British austerity not working
UK austerity measures to check growth [telegraph.co.uk]
Pain of British Fiscal Cuts Could Inform U.S. Debate [nytimes.com]
Britain's growth over the next three months will be roughly one third the pace of other major world economies, according to forecasts from the Organisation for Economic Co-operation & Development, as the first full round of austerity kicks in.
U.K. Manufacturing Output Falls as Recovery Doubts Persist [businessweek.com]
But in Britain, one year into its own controversial austerity program to plug a gaping fiscal hole, the future is now. And for the moment, the early returns are less than promising.
Retail sales plunged 3.5 percent in March, the sharpest monthly downturn in Britain in 15 years. And a new report by the Center for Economic and Business Research, an independent research group based here, forecasts that real household income will fall by 2 percent this year. That would make Britain’s income squeeze the worst for two consecutive years since the 1930s.
All of which has challenged the view of Britain’s top economic official, George Osborne, that during a time of high deficits and economic weakness, the best approach is to aggressively attack the deficit first, through rapid-fire cuts aimed at the heart of Britain’s welfare state.
Oct. 11 (Bloomberg) -- U.K. manufacturing fell more than economists forecast in August, adding to signs that the recovery continued to struggle in the third quarter.
Factory output fell 0.3 percent from July, when it declined a revised 0.2 percent, the Office for National Statistics said today in London. The median forecast of 24 economists in a Bloomberg News survey was for manufacturing to fall 0.2 percent. Overall industrial output, which includes mining and oil and gas, rose 0.2 percent on the month.
Will this give pause to the deficit hawks here? Doubtful.