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Macro-Economics IA

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Someone please help me, Ive been looking for articles long enough! Is this a good article for the macro econ commentary?

http://www.nytimes.com/2012/03/29/business/uk-economy-shrinks-more-than-expected.html?ref=economy

Thanks ALOT! :D

LONDON — The British economy shrank more than previously expected in the fourth quarter of 2011, but some economists said that improving conditions in Europe could keep the country from falling back into a recession

The economy contracted 0.3 percent from the third quarter of last year, more than the expected 0.2 percent decline, because companies held back on investment amid concern about consumer demand, the Office for National Statistics said Wednesday.

While another recession seemed to be an imminent threat at the end of last year, some economists revised their views recently and now expect the economy to return to growth during the first three months of this year.

Daniel Solomon, an economist at the Center for Economics and Business Research in London, said that positive data from the private sector combined with European monetary policy to create “an upward push on the economy.”

An auction of treasury bills in Italy on Wednesday resulted in the lowest rate in more than a year, signaling the return of some investor confidence following austerity measures and liquidity provided by the European Central Bank.

Britain’s interest rates, which stayed at a record low for the past three years and slowed inflation, and a fiscal stimulus package from the Bank of England helped offset some of the impact of the government’s far-reaching spending cuts. Still, economic growth is expected to remain anemic this year as consumers stay cautious and companies react by scaling back investments.

The service sector and the manufacturing and construction industries contracted in the fourth quarter, according to the statistics office. Mr. Solomon said he expected gross domestic product to grow 0.4 percent this year.

Signs from companies so far this year have been mixed. Game, one of the largest video game retailers in Britain, ran out of money on Tuesday and went into administration, putting about 2,000 jobs at risk. But Tesco, the supermarket chain, said this month that it would add 20,000 jobs

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Well i think its a damn good topic to talk aout aout as you can take monetary policies,fiscal poilicies and all into consideration while commenting on such an extract.

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