A colleague who knows about such things told me last night that the market in new cars is an accurate indicator of how well the economy’s doing; or rather, how the economy will be doing – there’s a six months lag between car sales and the economy. In other words, if car sales go down today, that’s a sign that in six months’ time the economy will slow down.
I think you know what’s coming next.
He tells me that there has been a recent slight dip in car sales in the UK, reflecting uncertainty in the economy. But more recently car sales have been recovering strongly. So, according to my friend’s thesis, by November or December, the economy will be fighting fit again.
That would be great news for the UK, for jobs and for the housing market. Bad news for the Tories and the “we’re all doomed!” brigade in the media.