Monday 15th of June 2009
High levels of consumer debt and other factors are likely to prevent economic recovery taking place in the near future, it has been argued.
Figures from the National Institute of Economic and Social Research (Niesr) indicate that the UK looks set to emerge from the recession sooner than anticipated.
However, chief European and UK economist at IHS Global Insight Howard Archer noted that despite the worst being over, there is still some way to go before sustained growth is seen.
"Unemployment is rising sharply, consumer debt is very high, the banking sector is still under a lot of pressure and credit conditions are still tight," he remarked.
Those who are concerned about being able to pay off what they owe as a result of these factors may wish to consider a debt management plan, which can allow repayments to be reduced.
The Niesr study showed that March may have marked the trough of the recession, with output rising in April and May.
