PracticeConsultingBDO issues upbeat economic forecast

BDO issues upbeat economic forecast

Mid-tier firm BDO Stoy Hayward today issued an upbeat assessment of the UK economy saying the majority of business surveys did not point to an all-out recession.

Despite the avalanche of bad news from the US and gloomy predictions from economic commentators, the firm’s ‘poll of polls’ forecasted that the economy would continue to grow – albeit at a slower rate.

‘The UK economy will continue to grow in 2002 despite the spectre of world slowdown,’ BDO partner Peter Hemington told The Sunday Times.

The optimistic assessment was part of the firm’s monthly Business Trends Report compiled by the Centre for Economics and Business Research ahead of the Monetary Policy Committee’s decision on interest rates.

This news could mean the MPC keeps rate changes on hold.

Hemmington said: ‘We expect to see the MPC watch and wait over the next few months until it has enough evidence to justify cutting rates further.’

BDO isn’t the first firm to say the economy is in better shape than the media is making out. Last month, KPMG said the downturn in the economy might not be as bad as initially feared. The firm cited Dun & Bradstreet figures indicating receiverships in the first six months of 2001 had only increased 3% compared to the same period last year.

Links

VCs jump on economic doom bandwagon

Manufacturing falls signal economic gloom

Economic warnings mount for Europe

Analysis: The brink of recession?

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