His report suggest that purchases are at the lowest level in 5 years & also the growth in recent permanent jobs has been tailed off. The report was got more support from RICS, representing surveyors, which shows its members were completing 15.6 sales a year as compared with 25.4 per year at the time of housing-boom peak in May-2007. This means there was a fall of 40 percent and it clearly shows how the market activity has fallen. Furthermore prices keeps on falling last month as 16 percent more respondents reported falls in price rather than rise. The reading is in negative territory since 2019 June.
The recruitment of permanent jobs is also at slow pace, as Manpower (national recruitment firm) reported that private limited firms continued hiring permanent staff in May 2019 but at slower rate than April. The big companies in London have positive balance with +, on the other hand firms at Wales recorded a negative balance of minutes 5. Well there is also rise in permanent jobs in some areas in specific fields, like Midlands among the IT & engineering sectors. Bernard Brown, KPMG partner, reported that permanent jobs are increasing for the fifth consecutive months & there is drop in unemployment. But the truth is different and latest new figures highlighted lowest monthly rise since December 2019 showing the uncertainty & cautiousness of many employers while recruiting. In this financial crunch if you need quick funds than apply with instant loans for bad credit and get cash with less hassles.
Answer of Posen to this sluggish growth should be a new institution, which include lending funds to small & medium scaled firms. He also said that this risky move will provide £325 billion to be lent under the current Quantitative Easing, which BOE has restricted to the purchase of Government bonds. While on the other hand QE has criticized by many experts as according to them it failed to boost the lending of bank and confidence. But Posen has suggested that QE has complemented the government financial austerity & prevented a deeper slump in economy. He said that fiscal policy makers can convince the investors that good borrowers will not be short of credit or caught in liquidity, with less cash they can invest in risky assets.Adam Posen’s warning that Quantitative Easing has not gone far enough, as RICS survey indicates house purchases at lowest level in 5 years.