A survey was conducted by the Chartered Institute for Securities & Investment (CISI), following news that the UK economy shrank by 0.6% in the last quarter of 2010.
One respondent, among the 36% who fear a double-dip said: “Rampant inflation will reduce consumer spending and the inevitable interest rate rise will be the final nail in the coffin.”
Another contributor added: “I’m not sure what branch of economics the coalition government is following. I’m unaware of any theories that suggest an aggressive reduction in government spending, reduction in jobs and general uncertainty about the future leads to increased GDP.”
Arguing against such a downturn, many respondents said that the shrinking of the economy in Q4 was a one off.
One said it was “a weather-related blip only” while another said that “trends matter, not isolated figures.”
