Friday, October 19, 2007
GDP still buoyant
Posted by David Smith at 11:00 AM
Category: Thoughts and responses

Gross domestic product rose by a strong 0.8% in the third quarter, boosted by a 1% rise in service-sector output. GDP was up by 3.3% on a year earlier. The numbers are probably too early to show any significant credit crisis effect but they confirm the economy to have been buoyant going into any slowdown. Details here.

Comments

Your right, these statistics probably don't take in the credit crunch. Lets not also forget Oil is at $90 a barrel. The growth statistics estimated by the treasury for the next 2 years is what worries me most.

Posted by: John@ScribbleSheet at October 19, 2007 02:17 PM

Enough of a surprise to put back IR cuts a month or two?

Posted by: Mr Naresh Radson at October 19, 2007 05:17 PM

Not a chance in reality.

A fantastic report, devoid of Labour spin is right here (it's written by a collective of Geman economists - ie ones that might have some "not so common" sense):

http://www.antibuerokratieteam.net/2007/10/22/more-mirage-than-miracle/print/

Posted by: matt at October 23, 2007 08:08 PM

Don't know what you're trying to prove with this - this is all well known information. Rising debt is a global phenomenon, including in the eurozone, where the debt-income ratio has trebled over the past 20 years. If you leave out Germany, plenty of European housing markets have boomed.

I think it unlikely that the MPC will think about cutting with growth this strong, nor should they.

Posted by: David Smith at October 23, 2007 10:51 PM