Bag's Rants

You are as good as you feel.

Maybe it is just me. I read this story about how the economy will be stronger in the new year.

Reading the story and the facts seem to be missing. But, they are not. It all appears to be based on a 'optimism index' which shows a rise of 0.8% in 4 months. Which implied a 3% rise in the second quarter of 2006. I'm not a economist so maybe I shouldn't be commenting but this does seem to be based on some sort of wishful thinking. On the optimism of those surveyed and, less so, the researchers.

The doom and gloom talk about consumer uncertainty, I'm certainly uncertain. High prices of oil, I don't see it getting any better due to Iraq, Iran and the fact our petrol stations are investing in new signs to cover over a pound a litre. Manufacturing output down. Now that did surprise me. I wasn't aware we had a manufacturing base now. Only joking.

So, I'm not convinced we have weathered the storm. We may be getting on with it while the storm is still raging but we are not clear yet and more small firms will bite the dust next year.

In saying that, the researchers are from BDO Stoy Hayward. This company has won a couple of awards for best fund and best management earlier this year. I hope this means they know what they are talking about.

Couple this with the story about education it makes me wonder what is going on? Two good news stories in one day covering areas where there seems to the layman to be little improvement and no sign of any either. I hope they are both right. I'm not holding my breath though.

posted by Bag @ 2:34 pm