The commodity’s decline in price has left consumers feeling that they have more cash in their pocket and also lowered costs for businesses.
For 5 years we have been campaigning and lobbying decision makers that lower pump prices are good for our economy. Time and time again the "experts" come out and agree with our evidence. here is yet another top economics guru saying the same.
"A fall in oil price is like a tax cut. Why? It leaves income in the pocket of consumers because they’re spending less on other things: petrol in their cars, heating costs,” said Trevor Williams, chief economist at Lloyds Bank Commercial. "Firms face lowers costs too because clearly their input prices, either fuel or energy and so on, are low. So firms and households benefit when oil prices fall.” While there is widespread optimism that the UK will continue on its current path, Williams pointed out that the current recovery was not as good as previous ones. "The economy is currently 4% bigger than it was in the period just prior to the recession. So if we’re looking at the 2008 first quarter, the economy is now 4% larger, it’s good news. And some revisions recently suggest it may be a bit bigger than that. "But this recovery is not as strong as previous recoveries: the 1990s recovery or the 1980s recovery, and the reason is clear: it’s due to the nature of the downturn that we had…”
Travel companies are also likely to benefit from the growth in the middle classes, as the economies of the developing world continue to flourish. "The world economy continues to grow and therefore the number of people who can afford to travel continues to grow alongside it,” Williams said. He also pointed out that consumer confidence remains high, which was aided by a resilient labour market. "You’re not going to get an increase in consumer confidence unless you get falling unemployment and rising employment, and that’s what the UK has had.” Williams was speaking at a joint seminar held by Lloyds Bank and the Association of ATOL Companies.
Full article at http://www.ttgdigital.com/news/falling-oil-prices-help-boost-uk-economy/4697649.article