Monday, 3 October 2011

Crumb of comfort for UK economy

Confounding some of the dire economic predictions,Britain's manufacturing sector has registered growth for the first time in three months.

CIPS Purchasing Managers Index (PMI), a measure of activity in the manufacturing sector, rose to 51.1 in September despite analysts predicting the lowest figure in two years.

It may be a small crumb of comfort for the government and may persuade the Bank of England to wait a little longer before approving a second dose of quantitative easing.

However before we all get too excited, over the third quarter as a whole, the PMI averaged 50.0, down from 52.7 in the second quarter and 59.4 in the first.

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