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Booming manufacturing

Maybe we are achieving a re-balance of the economy, good news if it is, or is it just stock building?
The purchasing managers' index for manufacturing is a welcome antidote to recent gloom, rising to a record 62 from an upward-revised 58.7 in December. Though there are also inflationary pressures affecting the sector (input costs rising at a record high), this suggests industry is firing on all cylinders, with new orders and employment also rising at record rates.

http://www.economicsuk.com/blog/
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher

Comments

  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Very good news for the economy. It will also force the BOE base rate up.
  • smeagold
    smeagold Posts: 1,429 Forumite
    putting that into perspective manufacturing is approx 14% of the economy whereas service/consumption is over 60%, rising prices(increasing taxes etc) will kill discretionary spending, the largest part of the economy.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    AndyGuil wrote: »
    Very good news for the economy. It will also force the BOE base rate up.

    Don't agree with that, interest rates will not be going up unless Georgie Porgie cancels some of those cuts.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    StevieJ wrote: »
    Don't agree with that, interest rates will not be going up unless Georgie Porgie cancels some of those cuts.
    Strong manufacturing shows the economy is getting stronger. Mervyn will see this as a sign that the base rate can be risen.
  • angrypirate
    angrypirate Posts: 1,151 Forumite
    AndyGuil wrote: »
    Strong manufacturing shows the economy is getting stronger. Mervyn will see this as a sign that the base rate can be risen.
    I more read it as the pound being artificially weakened. Second rates go up, pound gets stronger and manufacturing growth dwindles
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