Economy ‘on the mend’

A member of the Bank of England’s Monetary Policy Committee has argued that the UK is now entering a period of economic recovery.

In an address to the Institute of Directors, Spencer Dale said: “The economy appears to have turned” and added: “We are likely to be moving into a period of renewed expansion.”

He also noted unemployment and insolvency rates had not increased as much as may have been expected in the recession, due to actions taken by the government.

Such an upbeat view may encourage those thinking of taking out new financial products such as loans, as an improved outlook in the jobs market could lessen the chances of people being unable to pay these.

The sentiment expressed by Mr Dale was more positive than that of Vicky Redwood at Capital Economics, who recently suggested the UK may see a “double-dip” recession, where a short-lived recovery is followed by a new downturn.

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