The 4th quarter GDP figures were revised downwards, from a first estimate of -0.5% to one of -0.6%. Falls in service output were greater than first estimated and growth in industrial production was less. The UK economy is still perceived as being very weak.
The CIPS PMI figures suggest that the gloom is somewhat overdone. The CIPS manufacturing index is now 61.5, which is the highest it has been for a long time. Interesting the CIPS surveys confirm the weakness in the service sector. For once, it is industrial production that is driving the UK economy and as a result growth in the 1st quarter of 2011 should be significantly better than that of the 4th quarter 2010.
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