Wednesday, January 06, 2010
Services growing but confidence slips
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The contrast between the purchasing managers' index for the services sector and the official figures is striking, but surely even the Office for National Statistics must have growth for the sector in the fourth quarter when it produces its first estimate later this month. The PMI for services edged up again, from 56.6 in November to 56.8 in December. The index in the fourth quarter was at its strongest since the second quarter of 2007, before the crisis hit.

Meanwhile the Nationwide said consumer confidence slipped in Decmber, which on the face of it is hard to square with the evidence of booming Christmas and post-Christmas sales. Confidence fell by five points to 69, which the Nationwide thinks may be a reaction to the Pre Budget Report and expectations of future tax hikes. More here.