For an industry that long-term in a state of decline, the manufacturing sector is experiencing a kind of renaissance. According to the latest quarterly data from the CBI, manufacturing employment in the last quarter of last year rose to 20-year high, while the majority of respondents reported that they increased the number of jobs. Increase in foreign applications and competitive exchange rate of sterling, of course, now helps and is a great bright spot in the economy is experiencing hard times due to government measures to reduce the deficit. Investment intentions, the strongest from 1997.Posen is not convinced that inflation is a threat. "Dove" from the Bank of England monetary committee, Adam Posen is not confident that inflation accelerates in Britain, suggesting on Friday that a temporary phenomenon. In his view, inflation will fall back below 2% because of the huge amount of free capacity and the impact of cost saving measures on consumer spending. Posen was also surprised by Europe's ability to grow in spite of a sovereign debt crisis. It is absolutely clear, Posen will not vote to raise rates at a future meeting!
Consumer households are pessimistic about the United Kingdom to their finances. A poll conducted by Markit in the last couple of weeks, showed that consumers are concerned over their financial situation as from April 2009. High inflation, increase in VAT, and continued revenue growth inhibition imposed more pressure on already scarce finances. Inflation here - the main thing.
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