Household spending cuts ‘will slow economic rally’

Friday 29th January 2010, 2:30PM GMT.

ob Girard of RBS, left, with its Edinburgh-based head of macroeconomics David Fenton. (Picture by Peter Frankland, 0905232)

RESTRAINT in household spending will lead to a sluggish economic recovery, according to Edinburgh-based economist David Fenton.

The head of macroeconomics at RBS was in the Channel Islands last week to speak at informal briefings on the trends that we can expect to see during the coming year.

He believed the message he was putting out there and receiving from people in the markets and outside was one of cautious optimism.

‘Our view is that 2010 will be a turning point for the global economy and that the recession probably drew to a close at the end of last year.

‘The good news is that we are in recovery, but we believe it’s going to be a sluggish recovery.’

Mr Fenton said part of that was down to a more-considered approach in the household sector.

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1
Arnald

January 30, 2010 at 2:28 pm

RBS?
The utter failure of a generation-spanning macroeconomic theory and practice?
Trends analysis?

No offence intended, I’m sure he was worth every penny to listen to.

Was this a GuernseyFinance booking?
I ask as an interested tax-payer.

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