Thursday, November 21, 2013

UK Grows Whilst Eurozone Stagnates

According to a survey of 350 manufacturers carried out by the CBI, Britain's manufacturing sector is growing at its fastest rate for nearly two decades. The Telegraph reports that total order books relative to normal levels were at their strongest since March 1995.

The CBI survey's total order book balance rose to +11 this month to from -4 in October, well above expectations of 0 and the long-run average of -17. 

Meanwhile in the Eurozone things are somewhat different. Markit Economics said that its Eurozone Composite Purchasing Managers Index (PMI) for November (published today) fell to a three-month low of 51.5 points from 51.9 points in October.

France, the Eurozone's second largest economy, is dragging the zone down whilst the other smaller economies are all but stagnant.

Such is the effect of using one economic policy (via the single currency) for multiple economies that face different problems.

Tuesday, November 05, 2013

Britain Is Booming?

The Telegraph reports that the Markit/CIPS UK Services Purchasing Managers' Index rose to 62.5 in October from 60.3 in September. This was the highest level since May 1997.

As I noted the other week, it is the service sector that is driving the growth.

Now if the government could only bring itself to simplify the tax system, and indeed lower taxes, we might be assured that this growth can be maintained!