Economy is ‘flat-lining’ says IoD chairman

Gerry Jones predicts no significant change between the second and third quarters of the year.

“The only certainty in the latest labour market figures is uncertainty.” That is the view of Gerry Jones, the South West chairman of the Institute of Directors (IoD), who claims the economy is “flat-lining”.

Speaking after it was revealed that employment increased by 201,000 in the second quarter of the year, he said: “Optimists will point to the sharp increase in employment, together with the small fall in the unemployment rate and the number of claimants of Jobseeker’s Allowance.

“They will also argue that the labour market figures are a much better indication of economic activity at present than the GDP figures, with the latter likely to be revised up over time.

“Pessimists will counter that this is far too complacent, that the employment increase is overly dependent on part-time workers and a temporary Olympic effect which could reverse over the coming months.”

Mr Jones added: “So where does the IoD stand?

“The economy is flat-lining and we see no significant change between the second and third quarters. Companies remain very cautious about the UK economic outlook over the next 12 months.”