Staveley Head

Staveley Head

January 27, 2010 11:00 ET

Vehicle Manufacture Aids Recession Recovery

FLINT, UNITED KINGDOM--(Marketwire - Jan. 27, 2010) - Official Government figures recently released indicate that Britain has edged its way out of recession with a growth of 0.1% in the last quarter of 2009. If correct, the figures would suggest that the country has reached the end of the longest recession since records began. The economy has been shrinking over the last six quarters, going back to April 2008.

However, a Treasury spokesman stated that the figure of 0.1% is provisional and could yet be adjusted by as much as 0.2% upwards or downwards. So the figure is not a cause for great rejoicing. The recovery is very fragile and we may well see a "double-dip" recession as the economy slides backwards into negative growth in the current quarter.

The economic upturn was substantially assisted by the increased level of vehicle manufacture in December.

A spokesman for Staveley Head, one of the country's leading van insurance providers, said "We are informed by the Society of Motor Manufacturers and Traders (SMMT) that commercial vehicle output rose in December for the first time in 17 months, and that car output in the same period increased by 58%, the biggest monthly rise since 1976. Although, both car and commercial vehicle production remains well below pre-recession levels".

Other factors which helped the expansion included Government and Public Sector spending, which may have helped distort the figure and can only be of questionable benefit even in the short term.

It is unlikely that there will be any noticeable improvement in job prospects for the foreseeable future. There is currently 2.5 million people unemployed in the UK and experts predict that this figure will rise during 2010, thereby eradicating the consumer confidence so urgently needed to boost recovery.

Commercial vehicle insurance specialists, Staveley Head, do not foresee any significant improvement in the business sector in the coming months. They feel that the second half of the year is the very earliest that we will feel the benefit of an upturn in business confidence and output.

Contact Information