In news that is being echoed throughout the UK, the Bank of Scotland's index of leading indicators has recently shown that economic recovery will slow during the final quarter of 2010. Despite several positive things that have been happening, pessimism among consumers - along with many other factors - is expected to put a damper on the recovery of the Scottish recovery. Although recovery will cool down quite a bit, it isn't expected to come to a complete stop. For those who were hoping for a speedier recovery, though, this news is sure to be greeted with unhappiness. As a whole, the economy seems to be moving in the right direction - albeit slowly.

There are several bright spots these days concerning the economy. Low inter-bank lending rates have helped to encourage investment activities. Although they have been moving upward a little recently, they remain extremely low and have been working to stimulate the economy. The flip side of that news, though, is that housebuilding has not picked up the way that experts had been hoping it would. Indeed, many people are still eking out livings and relying heavily on payday loans; for such people, the concept of building brand new homes right now simply isn't feasible. Big-ticket items just aren't something that consumers are ready to invest their hard-earned money in right now.

Another hint about the expected economic recovery slowdown concerns car buying. Car sales started to slow in June and continued to slow down in July. This is another indication that consumer confidence remains quite low. People simply aren't ready to part with their money, even if they've found gainful employment. The state of the economy remains far too shaky for most people to willingly invest in expensive things. Much of these issues, of course, have been spurred by the expected cuts in government spending. Those cuts have been having a major impact on the confidence of consumers and manufacturers alike. As always, though, the news could always be worse. While recovery may be slowing, it still seems to be happening - and that is the important thing.