The stock market will close at lunchtime today, bringing to an end a painful year for the financial system and millions of families finding it harder to make ends meet.
Before the final day of business in 2011, the FTSE 100, an important indicator of confidence in the British economy, was down about 6% on the year.
David Buik said the FTSE is “a barometer of sorts”.
“Against the DAX in Germany and the CAC in France it has performed very well – we’re only down about 6%, while the DAX is about 17% and 13% for the CAC.
“Based on the fact those are two small indices, in terms of numbers of companies with only 30 or 40, mainly financial – need I say more.”
FTSE 100 One-Week Chart
With fears over the future of the eurozone, analysts say it could drop even further in 2012.
And that continuing crisis threatens to contribute to causing an expected so-called mild recession in the UK.
However, the director-general of the CBI painted a more optimistic message for the economy in his New Year statement, suggesting that 2012 could be the beginning of a more prosperous future for the UK.
John Cridland said: “2012 is going to be a hard road but if we are canny and act now to put in place solid economic foundations, we will be stronger and secure a better future for ourselves and our families.
“We need to identify how the UK will earn its living and pay its way in the years ahead and that means adjusting to change.
“The faltering recovery with family and business budgets under pressure and the ongoing crisis in the eurozone are stark reminders of the need to rebalance our economy away from household and government debt.”
The CBI said that the unprecedented economic stability between 1993 and 2007 masked “growing imbalances” in the UK economy, which has become dominated by debt-driven household and government consumption.