Used Construction Equipment: UK Economy Expected to Grow in the Final Quarters of 09

Used Construction Equipment: The UK economy is expected to bounce back from recession through modest growth in the third and fourth quarters of this year. Constraints on demand though will ensure that growth in 2010 is fragile, the CBI said. It also said that the near-term economic prospects are brightening. A recovery is underway in the global economy, which has been boosted by substantial fiscal and monetary stimuli, and the inventory cycle is starting to turn, both at home and abroad, which is helping to lift production. However, the pace of recovery in 2010 is expected to be slow.

MSloane Consulting predicts demand for used construction equipment to increase in the UK in the coming months as the economy recovers even as deals are nowadays are fairly on the uptrend as companies turn to used construction equipment during hard times to manage their cashflow.

The CBI predicts that UK GDP will post quarter-on-quarter growth of 0.3% in 2009 Q3, edging up to 0.4% in Q4 as consumers bring spending forward in advance of the VAT increase in January. However, this will dampen spending in early 2010 and although companies may be rebuilding stocks, they are likely to do so very cautiously. As a result, 2010 should start with very weak growth of only 0.1% in Q1 2010, and 0.3% in Q2.