UK Growth at 6 year high as forcasters say UK is exceeding expectation

[vinyl]

Good news at last despite the EU being mired in recession.

 

http://www.bbc.co.uk/news/business-23956192

 

he UK service sector grew at its fastest pace in six years in August, according to the latest survey by Markit and the Chartered Institute of Purchasing and Supply (CIPS).

 

The business activity index registered 60.5 in August, the highest reading in more than six-and-a-half years.

 

It also showed that backlogs of work are running at the highest level in more than 13 years.

 

But despite the extra work, there was only a small increase in employment.

'Stellar' performance

 

It was the eighth successive month that the survey, which questions 700 firms, has shown a growth in new business.

 

"The UK service sector turned in another stellar performance in August, building on the growth momentum seen during July," said Paul Smith, senior economist at research firm Markit.

 

"Moreover, the sector's recovery, which has been evident since the start of the year, has legs."

 

Economists say the performance of the service sector is giving the whole economy a lift.

 

"Robust service sector activity played a key role in the UK's developing recovery through the first half of the year, and the very strong purchasing managers survey for August suggests that the services sector is on course to make an even larger contribution to GDP growth in the third quarter," said Howard Archer an economist at IHS Global Insight.

Interest rates

 

It is the latest in a series of upbeat reports on the UK economy.

 

On Tuesday the OECD economic agency sharply increased its growth forecast for the UK economy this year to 1.5% from an earlier estimate of 0.8%.

 

It said UK growth had gained momentum through the first half of the year.

 

But economists say the growing momentum could put pressure on the Bank of England (BoE) to take action on interest rates.

 

"Given the strength in orders, rising business optimism and a pick-up in investment intentions and employment hiring surveys we expect the BoE to be forced into tightening monetary policy well before the third quarter of 2016 that they are currently suggesting is the earliest point policy tightening will start," said James Knightley from ING.

[Mecky]

Is it exceeding expectations because it was revised down by about 50% a couple of months ago? And the article is soley about the service sector and nothing else, so stop trying to mislead people with the title of the thread.

[Supertramp]

Is it exceeding expectations because it was revised down by about 50% a couple of months ago? And the article is soley about the service sector and nothing else, so stop trying to mislead people with the title of the thread.

 

Cheer up, soon Ed the dimwit will be in charge and you can start defending him and saying he's only trying to fix the Tories' mess that's why he is so ****.

[Mecky]

Cheer up, soon Ed the dimwit will be in charge and you can start defending him and saying he's only trying to fix the Tories' mess that's why he is so ****.

 

I criticise anyone and anything I don't like regardless who it is

[vinyl]

I criticise anyone and anything I don't like regardless who it is

:hihi::hihi::hihi::hihi:

They just don't allow us to use enough smileys.

[daneha]

Its looking like good news for our economy.

 

UK private sector grows at fastest rate since records began.

 

Martin Beck at Capital Economics said the weighted average of the three sector's PMI pointed to the UK economy growing at a rate of 1.5pc in the third quarter, a level not seen for 14 years.

 

So the title could read.

 

UK could be enjoying the fastest growth rate in 14 years.

[Doom]

The economy does finally seem to be moving the right direction.

 

I guess Labour will try to talk the economy down because good news on the economy front doesn't help their political aspirations (I hasten to add, should the roles be reversed, the Tories would do the same). This is why I have little time for politicians, they're more interested in what's good for them rather than the country as a whole.

 

I'm assuming Mecky is a Labour voter?

 

Regards

 

Doom

[vinyl]

 

UK could be enjoying the fastest growth rate in 14 years.

 

Don't say that you'll have Mecky jumping off the Tinsley Viaduct.

[WeX]

I criticise anyone and anything I don't like regardless who it is

 

Hmm, its like a drive in the country round here after reading that.

 

when was the last time you criticised anything Labour have said or done?

[Mecky]

The economy does finally seem to be moving the right direction.

 

I guess Labour will try to talk the economy down because good news on the economy front doesn't help their political aspirations (I hasten to add, should the roles be reversed, the Tories would do the same). This is why I have little time for politicians, they're more interested in what's good for them rather than the country as a whole.

 

I'm assuming Mecky is a Labour voter?

 

Regards

 

Doom

 

But have you noticed about the government has been trying to talk up the economy for the last year and provided little evidence. Most economist agree that the UK is flat-lining at best