UK economy shows increasing weakness

Various economic indicators published this week warn that the economy shows increasing weakness.

On Tuesday the British Retail Consortium (BRC) revealed that high street sales were down 1.4% on last year.

Cold weather and the late Easter have been blamed for the fall.

Then on Wednesday, the Office for National Statistics (ONS) published figures that showed yet another increase in unemployment figures - for the 13th time in the past 14 months.

While the UK economy has enjoyed a boom over the past decade, much of the consumer spending has been fueled by borrowing against exaggerated increases in house prices. But the housing markets are now cooling.

Inevitably, with the major engine for growth slowing down and even coming to a standstill, it should be no surprise if we see continued indicators of a weakened economy and potential recession, as the economic cycle naturally attempts to balance previous abnormal growth.