Tuesday, July 02, 2013
Better news on growth
Posted by David Smith at 08:30 AM
Category: Thoughts and responses

After Monday's rise in the manufacturing purchasing managers index from 51.5 to 52.5, there is more good news in the Britihs Chambers of Commerce quarterly survey, covering both manufacturing and services.

It showed that in the service sector domestic sales and orders in the second quarter were growing at the fastest pace since the fourth quarter of 2007. Export sales, impressively, grew at the fastest rate since the survey began in 1989.

Among manufacturers, domestic sales growth was the strongest in two years and growth in export orders the best in a year.

"The strength of the export balances, particularly in the service sector, confirms the existence of huge untapped potential that must be unleashed," said David Kern, economic adviser to the BCC.

The BCC suggests its survey is consisent with growth of 0.6% in the second quarter. If this is correct, the economy will have achieved 0.9% growth in two quarters - achieving what many forecasters were predicting for the full year.

Also encouraging - the purchasing managers index for UK construction rose from 50.8 in May to 51 in June, boosted by housebuilding.