Contractors will pleased to hear that a new survey has revealed that the UK economy is set to be much stronger in the second half of the year.
The latest quarterly forecast, which has been carried out by Ernst & Young ITEM Club, has predicted that we will all be enjoying an ‘Indian Summer’ as the economy will return to growth over the next six months, boosted by falling inflation and a pick-up in consumer spending.
Despite the organisation revealing that unemployment is on the rise, this could in fact benefit highly skilled freelancers and limited company contractors, as this could lead to more firms taking these workers on.
Peter Spencer, chief economic advisor to the Ernst & Young ITEM Club, said, “The boost to household finances and the subsequent pick up in spending should be enough to push the UK back into positive territory this year, but don’t expect a consumer led recovery further out.
“Longer term, consumers are going to be more focused on reducing their debt burden rather than splashing the cash.”
According to the quarterly forecast, business investment will only return to pre-recession peaks in 2015, but Spencer says there is a chance that businesses could surprise on the upside.
He added, “The prospect of a durable UK recovery remains heavily dependent upon confidence in financial and business communities and it’s is going to take time to re-build. However, a resolution of uncertainty about the Euro could transform the outlook, pushing company spending up much faster than forecast.”