Tuesday, July 08, 2008
Gathering gloom
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

A clutch of weak surveys and official statistics to start the week. This morning's British Chambers of Commerce survey, here, has given rise to very gloomy headlines. Many of the survey balances are weak, though not quite as weak as they have been painted, being the weakest for a few years not 16. Judge for yourself. Also, manufacturing output fell by 0.5% in May and dropped by 0.2% in the latest three months. More here. The National Institute says these numbers are consistent with a 0.2% rise in gross domestic product in the second quarter.

On the housing front, the divergence between the lenders' data and other measures continues. The DCLG (Department of Communities and Local Government) house price measure fell by a modest 0.3% in May and was up by 3.7% on a year earlier. London house-price inflation actually increased. Mystified? The index is here.