UK Officially Out of Recession

Britain has officially just come out of its longest recession. After 6 consecutive quarters, or 18 months, of a shrinking economy the tables have finally turned.

The growth, however, is not as great as experts had predicted, having only risen by 0.1 percent. Some also fear a double dip claiming that people spent more only to avoid the rise in VAT that was to occur, and after the VAT has increased people may cut their spendings once again.

Still, many companies are feeling more confident because of this significant change. Managers at the Vauxhall plant in Luton for instance have already announced reversing their scheme of less work and lower pay which was put in place during the recession.

The founder of Jordans Cereals, Bill Jordan, is also feeling optimistic about these figures and says that over the last few months premium brands like his have already regained popularity.

Source: Working Lunch, BBC. (26-01-2010)

UK Officially Out of Recession

John Smedley Coping in the Recession

The family owned knitwear company, famed for its quality and price, are now celebrating their their 225th anniversary. The company makes around £15M a year on jumpers, cardigans and twinsets.

Andrew Caughey is John Smedley's Managing Director. He says that during the recession sales for the company have remained stable. The reason, according to him, is that in a downturn consumers are often willing to forego cheaper and lesser quality products for those which are more lasting.

Only a third of John Smedley's sales are in the UK, and it turns out that the Kingdom held strong for the business recently due to its weakening sterling which has attracted tourists to buy more.

Source: Working Lunch, BBC.

John Smedley Coping in the Recession