Economic Recovery Uncertain

Although some statistics seemed to be indicating an 'easing off' of the economic crisis that has gripped us for so long, recent reports have given rise to concerns over a 'double-dip' recession.

The situation in the UK seems to be steadily improving, but the rate of recovery in the US is now falling behind initial hopes. This does not mean that the US alone will be affected because whenever the US sneezes (financially), the rest of the Western economies are bound to catch a cold.

There are a few key indicators of recovery including house prices (but don't forget house pricing, and miss-sold mortgages was what got us in this mess originally...!), and job statistics - decline in construction jobs and manufacturing jobs indicates a decline that cannot easily be reversed.

Manufacturing jobs are often permanent losses, construction work tends to fluctuate, but the amount of construction taking place is a good indication of how healthy an economy is.