Tuesday, April 26, 2011
Mixed bag from the CBI
Posted by David Smith at 02:00 PM
Category: Thoughts and responses

The CBI's industrial trends survey is an important indicator and today's speaks to several parts of the current debate. Manufacturing is still enjoying a decent recovery though there is some evidence of a weakening in the pace of that recovery. The survey's employment balances are at their best since 1974, suggesting the sector is recruiting significantly.

The worry is inflation, with domestic prices rising at their fastest rate since 1995 and export prices since 1985. Price expectations are at their highest for 21 years. That March fall in inflation may have taken the heat out of the interest rate debate too soon. More here.