Following reports last week that Britons are continuing to spend despite the attacks on the US and their repercussions [WAMN: 04-Oct-01], Bank of England governor Sir Edward George has said he is “reasonably hopeful” strong consumer demand can steer Britain clear of recession.
“The events of September 11 did not have a very significant impact on the domestic part of the economy or much impact on consumer demand,” he commented.
George argued that the UK had been in a better position than others to cope with fallout from the attacks. “We were in better shape looking at the overall economy when those things hit us and partly because of that, I think, consumer confidence was less damaged in the UK than elsewhere.”
Chancellor Gordon Brown echoed George’s positive remarks, saying he was “cautiously optimistic” about the outlook for Britain’s economy. Brown’s advisers stressed there would be no increase in taxation to cover falling public finances in the near future.
News source: The Times (London)