We've said in lecture about how confidence is important: If firms are confident they invest, and they hire workers. So news today that confidence is up in industry is good news for the economy, after last week's upward revision in economic growth.
If firms are investing, and starting to hire new workers, then the growth prospects for the economy are good, and this reduces the probability of a double-dip recession - the idea that the UK economy might fall back into recession after this quarter of growth.
Jury still out, of course, we'll have to wait until late next month to know for sure how the economy fared in 2010Q1.
This blog accompanies the econ101ab Principles of Economics course given at the University of Birmingham. The lecturers for both parts of the course (101a, microeconomics and 101b, macroeconomics) will occasionally post here on matters related to lecture material. We hope to show the relevance of the concepts we are teaching at each stage of the course for helping understand how the world works...
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