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Page last updated at 08:37 GMT, Tuesday, 4 December 2012

Is there 'spare capacity' in the economy?


The Chancellor George Osborne will make his Autumn Statement on Wednesday.

It is a chance for him to spell out the progress he has been making, or lack thereof, in getting the government deficit down and the economy growing again.

But there is one question that underpins virtually every big decision on the economy at the moment, and that is how much spare capacity is there in the economy?

Today presenter Evan Davis went in search of spare capacity.

Andrew Sentance, senior economic adviser to PwC, explained, "We haven't yet discovered where the new sources of growth are going to be."

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