The Slow Road To Recession

Sorry for being a bit negative, but I've been looking at various bits of economic news and figures, and unfortunately things don't look that great.


The cost of living has continued to rise at a pace in which wages have not been able to keep up with, limiting households' spending power. But over the past couple of weeks more and more economic figures here and around the world are pointing to a double-dip recession. 


Unlike the first recession where people were far less restrained in their spending, if a second recession were to hot when people have already tightened their belts considerably, we could find that a second recession could be more damaging than the first.


This restrictive spending comes amid a backdrop of Europe slowly drowning under massive sovereign debt, which looks more and more likely as the weeks go by that this debt is going to go unpaid, and Governments, especially those of Greece, Portugal and Spain are likely to default and be declared bankrupt. Of course if this does happens, there are dozens of banks, and many on these shores, who are likely to lose billions. And we all know what happened last time banks didn't get the money the were owed.


When you look at the UK specifically, things haven't looked great for the last three quarters. Economic growth has been revised down various times, both by Government and other fiscal bodies. Interests rates may as well not apply they are that low, and the Government has implemented deficit reduction plans that cut way too far way too quickly.


Looking at the window industry, I don't think the image is that positive either. I know some companies out there are doing alright. These are the ones that are actively winning the business, signing up contracts with decent profit margins which are going to see them through the quiet Winter and Xmas/New Year period. But this unfortunately doesn't represent the whole industry I feel. There is still a lot of our sector struggling out there, and I fear that a lot of companies won't be here to see the introduction of the Green Deal which could give the industry a boost.


It's definitely time to get our recession mind sets back on. I think the double glazing industry did better than expected through the last recession. I think if we have the same grit and determination to stay around it will give us a fighting chance should we all be hit with another recession.