In Perspective 2008/09

The signs are ominous both for ordinary consumers and businesses, and for the160Labour and Conservative parties. The last few months have seen an unprecedented rise in concern about the economy among the public - but so far concern about unemployment is still at an historic low. For most of the 1970s, 1980s and 1990s, public anxiety about unemployment averaged around 40%, and periodically hit highs of over 80%. Today it remains at only 24%. In one sense so far then, despite pain on the High Street, and the majority of companies and consumers in our surveys saying they are cutting spending, we are still at the "phoney war" stage of recession. We know it is coming, and yet for many it is still about media panic as much as real pain - the next few months will be a wake-up call, especially for those who have grown up since the mid-1990s and experienced only growth in public and private spending.