Dear reader the end of the week is here as we saw the manufacturing sector which represents nearly 15% of the gross domestic product (GDP) contracted but at a lower rate than the prior which is supporting the fact that the major sectors in the nation that are supporting economic growth are bottoming out.
The Chartered Institute of Purchasing and Supply (CIPS) released its PMI manufacturing coming in at 42.9 higher than the revised prior reading of 39.5 from 39.1 while beating market expectations of 40.0. Since the reading is still below 50 this is showing us that the sector is contracting while above 50 would indicate an expansion.
Lately there has been increasing speculations that the pace of the global recession is easing and today we see that as the manufacturing sector narrowed in contraction is giving us proof, and now we have to see if the other sectors are improving because if this is the case then this would help jolt the United Kingdom out of recession.
It is was not just the manufacturing sector that was contracting, but also it was the service sector that was contracting heavily and as we all know this sector accounts for three-fourths of economic growth. Also there was the construction sector tumbling downwards from the deteriorating conditions in the housing sector. These are some factors that are weighing on Britain's growth.
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