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http://news.bbc.co.uk/1/hi/business/5278036.stm' rel="external nofollow">
Manufacturing demand unexpectedly improved in August, according to the CBI business group, putting in its best performance for a year and a half.
The CBI said its monthly order book balance rose to minus 8 from minus 11 in July, against forecasts of minus 12.
The group added that although the figure remained negative, it was the strongest showing since December 2004.
However, the balance for expectations of future output fell to plus 11, down from July's figure of plus 14.
A pick-up in domestic demand drove August's improvement, as export levels remained unchanged, the CBI said.
"The outlook remains encouraging for UK manufacturers," said CBI chief economic adviser Ian McCafferty.
"But it is disappointing that export orders have not improved more, given the current revival of the eurozone economy, our principal export market."
The CBI survey also indicated that prices are set to rise in coming months as firms that had previously been absorbing higher energy and raw material costs are now looking to pass these costs on.
The balance of firms expecting to raise average prices over the next three months rose to plus 13 - the highest level in 20 months.

Quick Gordon! Get ONS to replace manufactured goods in the "basket"

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Yep, but what will it mean/translate into?

- A couple of IR hikes and then redefine inflation again?

- A massive increase in immigration to surpress wages and borrowing/spending?

- Both of the above?

- A raise of IR so high it surpresses demand but crashes the housing market? (unlikely)

PS immigration is so prevelant now that it's getting mainstream coverage - not once in the reports I've seen have they mentioned immigration might be being used by the Goverment as a tool to surpress wages (probably because that would involve them explaining the reason why - ie fighting inflation) - it was usually approached from a cultural angle - how little respect they have for the masses and the reason why inflation will continue to climb - as long as people are not aware of it...

Edited by dnd

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A September 0.25% IR hike? :)

IMO that won't crash the housing market or supress borrowing/spending - real inflation (not the CPI index) will continue to rise

In fact IIRC the CPI went down this month!!! - indicating no rate rises - after all that's what the CPI is for - to tell you if they are going to raise IR or not - it's just fiddled to reflect their intended IR movement actions - not the real state of inflation

Edited by dnd

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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