Wednesday, June 29, 2011
Soggy services, modest money supply growth
Posted by David Smith at 01:30 PM
Category: Thoughts and responses

Only second rank data today but none of it very strong. Service sector output fell by 1.2% between March and April, largely reflecting the additional bank holiday. April's level of service sector activity is 0.5% down on the first quarter average, so will need a decent May-June bounce to show growth between the two quarters. Q2 service sector growth is unlikely to match the first quarter's 0.9% expansion. More here.

Also released, Bank of England data showing that M4 rose by 5.2 billion in May but was up by a modest 1.7% on a year earlier. More on that here. Mortgage approvals rose slightly to 45,940 in May, compared with 45,447 in April but were slightly below their six-month average. Still very weak.

Weak productivity growth has been a feature of the recovery and it continues. Whole economy productivity grew by just 0.1% in the first quarter and was a mere 0.3% up on a year earlier. Hence strong employment. More here.