'Double dip' fears

August 16, 2010, 11:58 PM GMT+0

The majority of UK adults thinks it is likely that the British economy will go back into recession in the next twelve months, a survey has found.

55% of the public think that it is ‘likely’ that another economic slump, or ‘double dip recession’, will occur at some point in the coming year. However, feeling is moderate, with only 14% finding this scenario ‘very likely’ compared to 41% who think it is ‘fairly likely’.

These results are perhaps a reflection of the uncertainty expressed by leading economists such as Mervyn King (Governor of the Bank of England) who has warned of ‘a choppy recovery’, and Sir Alan Budd (outgoing head of the Office for Budget Responsibility), who today admitted that he could not ‘rule out’ a double dip recession.

Labour voters were by far the most pessimistic group, with 72% contending that there will be an economic downturn. In comparison, 52% of Liberal Democrat supporters found the prospect of a double dip recession ‘likely’, with only 42% of those who vote Conservative in agreement.

In contrast, one third (33%) of the British public feels the chances of the economy faltering once more are ‘unlikely’, although most remained cautious in their prediction: only four percent thought it ‘very unlikely’ that the British economy will not enter recession again in the next twelve months.

With the fear of double dip recession fairly high, it looks like many feel we may not be out of the woods yet.

Survey details and full results