Wednesday, November 05, 2008
Figures make case for big rate cut
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

The data leading into the Bank of England's interest rate decision tomorrow is weak. Manufacturing output dropped by 0.8% in September and was down by 2.3% on a year earlier. Meanwhile, the purchasing managers' index for the service sector slumped to 42.4, the weakest since the survey began in 1996. The survey may have been affected by the extreme turbulence in financial markets but nevertheless points to another significant fall in gross domestic product in the fourth quarter. The manufacturing data is here.