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Realistbear

Service Sector Growth Figure Released--worst Since Nov

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http://www.tiscali.co.uk/news/newswire.php...y_template.html

05/09/2006 10:21

By Christina Fincher

LONDON (Reuters) -
The service sector grew more slowly than expected
in August and at its
weakest pace since November
, a survey showed on Tuesday, indicating last month’s surprise rise in interest rates may be starting to bite.
Business expectations fell to their lowest level since the start of the Iraq war in 2003
but input prices surged, leaving investors confident the Bank of England will raise rates again before the end of the year.
The Chartered Institute of Purchasing and Supply/Royal Bank of Scotland services business index
slipped for a fourth month
to 56.7 from 57.9 in July. Analysts had predicted a more moderate pullback to 57.6.

Bright and cheery news for the HPC but doom and gloom for HPI. :)

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Good excuse for the committee to hold rates then.

http://uk.biz.yahoo.com/05092006/214/servi...owth-falls.html

Tuesday September 5, 11:55 AM
Service sector growth falls again
LONDON (ShareCast) - Activity in the UK service industry fell for a fourth consecutive month in August,
though input prices surged ahead.
The Chartered Institute of Purchasing and Supply said its services business index fell more than expected, marking
its fourth straight decline, to 56.7 in August from 57.9 a month earlier.

Not so sure. The problem is that while the economy shrinks prices are surging up up and away. It looks like the worst case scenario is shaping up for Gordon to sort out. Looks like Tony is hanging on for another year so Gordon will be in the hot seat to take the blame as the Miracle Economy collapses around him.

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Do the BoE have the balls to sort this out? Inflation is the biggest problem facing this country at the moment. Are the best decissions sometimes the most unpopular?

Gordon and his band of merry men at the BoE are in the same place as their opposite number in the US: Recession or inflation. Hike now or hike a lot more later.

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Do the BoE have the balls to sort this out? Inflation is the biggest problem facing this country at the moment. Are the best decissions sometimes the most unpopular?

Wasn't it Norman Lamont, who, after the economic disasters of the early 90s, proudly proclaimed "Unemployment was a price worth paying [to bring inflation under control and get the economy back in order]": he wasn't very popular.

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Gordon and his band of merry men at the BoE are in the same place as their opposite number in the US: Recession or inflation. Hike now or hike a lot more later.

It's the old exam revision formula. The later you leave it, the harder it gets. Why do today what you can put off till tomorrow. Particularly when its going to be about as popluar as a fart in a spacesuit.

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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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