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September Growth Crowns Strongest Quarter For Uk Services Sector In 16 Years - Pmi

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http://uk.reuters.com/article/2013/10/03/uk-poll-services-idUKBRE99208520131003

Britain's service sector posted solid growth in September, rounding off its strongest quarter in more than 16 years, helped by a recovery in the country's housing market, a survey showed on Thursday.

The headline Markit/CIPS Purchasing Managers' Index (PMI) for services eased to 60.3 from August's near-seven-year high of 60.5.

The reading, well above the 50 level that indicates no change, was higher than the 60.0 consensus forecast of analysts polled by Reuters.

The sector saw jobs growth in September, something mirrored in surveys of manufacturing and construction earlier this week.

Crack open the champagne our economy has been rescued....

And they just can't resist putting it down to a housing recovery!

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I will give 'them' some credit - There is a lot more house building than in 2010,2011 and 2012, but that's is it.

I think that it is unlikely that building will pickup further due to NIMBYISM.

The boomers trying to downsize from their 5 bedroom detached houses (you know the ones) wont stand for the country printing (building) more money (houses) and devaluing their pension.

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The Times has commentators opting for +1.2% GDP for Q3 based on this survey which covers 70% of the economy.

I don't think we quite believe it though after six years of what has felt like a depression (nor does the MPC), otherwise why would you have HTB2 and zirp. Hardly compatible with 5% annaulised GDP and 6.6% annualised house price inflation on yesterdays release (Sept 13/Sept12).

I suppose you look across the channel to Europe's sluggish growth and perhaps this can't last. but it is going to take some bloody explaining by Ed Balls if we do continue to outpace the developed nations with these stellar numbers.

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The Times has commentators opting for +1.2% GDP for Q3 based on this survey which covers 70% of the economy.

I don't think we quite believe it though after six years of what has felt like a depression (nor does the MPC), otherwise why would you have HTB2 and zirp. Hardly compatible with 5% annaulised GDP and 6.6% annualised house price inflation on yesterdays release (Sept 13/Sept12).

I suppose you look across the channel to Europe's sluggish growth and perhaps this can't last. but it is going to take some bloody explaining by Ed Balls if we do continue to outpace the developed nations with these stellar numbers.

I suppose if Balls has to look like an even bigger prat that is one good result of these fantasy figures?

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I suppose if Balls has to look like an even bigger prat that is one good result of these fantasy figures?

Only fair to give the Tories at least a quarter or two living on Fantasy Island off the back of HTB2. Let's face it the Labour Government went for a tripling in house prices and a public sector spend fest to get their fantasy growth and they reaped the praise for several years.

Edited by crashmonitor

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The Times has commentators opting for +1.2% GDP for Q3 based on this survey which covers 70% of the economy.

I don't think we quite believe it though after six years of what has felt like a depression (nor does the MPC), otherwise why would you have HTB2 and zirp. Hardly compatible with 5% annaulised GDP and 6.6% annualised house price inflation on yesterdays release (Sept 13/Sept12).

I suppose you look across the channel to Europe's sluggish growth and perhaps this can't last. but it is going to take some bloody explaining by Ed Balls if we do continue to outpace the developed nations with these stellar numbers.

We already have the explanation. HTB1 + the primary deficit + ZIRP and Bernanke's QE Infinity combined to create a sharp debt acceleration and asset price inflation.

The acceleration of debt (credit impulse) precedes changes in demand growth (US economy, below) and corresponds very well with them. Since it's an acceleration not a velocity credit impulses are always transient.

mayer%20fig1%2010%20sep.png

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The Japanese economy was in and out of recession too over the past, what 20 years?

Cameron and Osborne can only claim credit because of htb 1 and 2, when we see GDP dip again they better be ready to take it on the chin instead of blaming everyone else.

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At least now that the UK economy is in an outright boom and outperforming virtually the entire world then people can expect some good wage rises to share in the profits and at long last savers can be given a reasonable return on their savings. No?

Edited by billybong

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And we know what happened to the Celtic one.

more like a cougar economy, what with the way the old fck the young.......

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There's only one way to describe it.

The UK is a TIGER economy.

More like a jimmy saville economy. Corrupt, hanging on to past glories and can't stop shafting the younger generation whilst the establishment looks on.

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The Japanese economy was in and out of recession too over the past, what 20 years?

That's true but the nature of theirs has been somewhat different. Examples being that they had deflation and low personal debt whereas we've had the exact opposite. They also have horrible demographics to contend with which we don't to the same extent at least.

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