RIMANEWS - The UK economy has been trapped in a double-dip recession and has shown no signs of recovery, as retail sales growth slowed in July following the tumbling of manufacturing in June.
The Globe and Mail reported that Britain is facing a gloomy outlook. The country is currently struggling in a deepened recession due to the euro zone debt crisis, government spending cuts, bad weather and one-off factors which are damaging the economy.
Manufacturing output dropped by 2.9 percent in June as a result of extra public holidays introduced to celebrate Queen Elizabeth’s 60 years on the throne.
Retail sales growth also slowed in July as unusual weather conditions of record-breaking rain weakened sales of summer clothes and other products relating to the season.
The Globe and Mail was not optimistic about the Olympic effect on the UK economy. It stated: “Britain’s athletes may be having a golden Olympics, but exactly how the greatest show on earth will influence the country’s economy is yet to emerge.”
Britain’s ongoing weak economy is pressuring the government to slowly abandon its austerity programme; as it aims to erase a huge budget deficit within 5 years in an attempt to boost a long awaiting growth. [presstv]