Monday, August 1, 2011

Three years of recovery speak – nothing delivered

UK recovery hopes hit by weak manufacturing

According to the closely-watched purchasing managers index (PMI), factory activity shrank for the first time in two years in July as domestic demand dropped sharply. The reading of 49.1, down from 51.4, was well beneath the consensus forecast of 51, where anything below 50 indicates contraction.

Posted by dill @ 12:35 PM (1209 views)
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4 thoughts on “Three years of recovery speak – nothing delivered

  • sibley's b'stard child says:

    So presumably raising IRs would choke-off the export-led recovery even further ergo…?

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  • @1

    The UK walks into a shop and tries on a kimono for size!

    And I don’t want to here any more on QE. QE is the economic equivalent of methadone for debt addicts. It works fine for a couple of courses as long as the patient can can gain willpower and responsibility to straighten themselves out. But, if not, the replacement therapy also becomes addictive and, eventually, everyone gives up on supporting the afflicted for fear of being tainted.

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  • “QE is the economic equivalent of methadone for debt addicts”

    Agree – and perhaps more pertinantly, it won’t help win elections.

    The electoral apathy amongst the under 40’s means that the majority of those who actually vote in the next election are likely to be over 60; and if there’s one thing the older generation really don’t like, it’s getting virtually no interest on their savings and having to dig into their capital to get by.

    Our Dave really needs to start leaning on Merv now to start getting interest rates heading back to normal, and to embrace a 5% inflation target instead of 2%.

    Manufacturing will sort itself out, if government stops interfering. Abolishing the Health & Safety Executive would be a good start..

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  • Dragonsslave says:

    Who’s surprised?
    Delvalue the £ and the materials and energy we import go up in price and we have to raise our prices to cover the loss.
    A devalued £ also allows German companies to buy out their English competitors cheaply and asset strip them. It has happened to my fiance’s employer – they were bought out and told that 60% of the factory would close and key personnel they wanted from the mixing plant would be offered jobs in Burnley (from Birmingham). Any shortfall in productivity would be covered from the Lithuanian plant.
    The clowns at BOE and Gov know nothing. viva la revolution!

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