With growing optimism that the global recession is now starting to lose its grip, stock markets around the world are continuing to bounce back. In fact, the rate of growth has increased dramatically since the early part of July with the FTSE 100 index now trading at a very respectable 4695 after reaching a low of 3500 at the beginning of March.
History has shown that it is often the stock markets which have led the way out of recession. If this is again the case then people are quite right to be optimistic that the worst of this recession is now behind us.
For the last few months, historically low interest rate levels have been maintained around the world as the main central banks have opted to leave rates unchanged. This is undoubtedly having a positive impact on the world economy, especially in the UK where many people are choosing to repay debt at record levels with the extra money.
The important Stirling 3 month LIBOR rate has continued its rapid downward trend and is now well below the 1% mark, and the UK housing market is showing increasingly healthy signs as all of the main market surveys continue to report increasing prices, particularly in London and the south.
So is the end of the recession in sight?
Of course no one can predict the future but with mortgage lending picking up, house prices rising and increasing transaction levels it looks very much as though the housing market has bandaged its wounds and is now starting on the road to recovery….and that is a good sign.
