Public Sector borrowing still climbing

September’s most recent economic reports are not promising, as there was a rise in net borrowing in the Public Sector on the heels of what was supposed to be a drop in that number.  The pound has taken a further slide and it appears that government intervention into the financial sector has been proved mute in the face of continuing poor statistics.

While some economists comment that the month of September historically reports downtrends in the economy, others raise the opinion that the government will see the poor performance as yet another reason to tighten the belt and cut spending.

While some experts believe the government response is appropriate, others argue that further tightening government spending will see a loss of even more public sector jobs and a run toward inflation and double-dip recession.

It is believed that the heightened percentage of private sector borrowing will only propel the Chancellor’s implementation of savage spending cuts in an effort to meet his goals for the economy.  September’s reports simply cast greater doubt on the government’s ability to reach June Budget forecasts, forcing them to take even more drastic measures in an attempt to meet those projections.

With reports repeatedly falling short of economists’ predictions, it causes one to wonder if over optimism or just repeated inaccuracies are the cause of such nearly constant disappointment.