Originally posted by GB9
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...UK PLC is in a great position because our excess capacity will drive down cost, which in combination with the reduced value of GBP, will make us super-competitive! -
Looking past the BBC headline.....
If this is the worst it's going to be then the doomsayers will be disappointed.
Growth slowing to 1.7% this year and to slow to 1% next year. 50/50 chance of a technical recession.
Orders stable. Prices down. Inflation to hit 3%.
Hardly worth bothering with.Comment
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I don't bother with the Euro-Quisling BBC, but instead take the Telegraph:Originally posted by GB9 View Post
Note the important words at the end that it is only one month's data. However, it's encouraging to see the first sign of how Brexit may increase our competitiveness.Dramatic drop in overall UK business activity will be 'a reality check'
David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, also comments on the latest services PMI data:
“After three-and-a-half years of growth, the services sector returned to contraction as Brexit contagion suppressed new orders and overall output at rates last seen during the financial crisis in 2008-2009.
“The overall rate of retrenchment was the fastest since March 2009, as supply chains were hit by a continuation of muddy business conditions, rises in food and fuel prices and a demand from staff for higher wages to offset the impact of weaker economic conditions, experienced now for many months. The aversion to investment and a lack of consumer confidence also delayed or reversed contract decisions.
“Any vestiges of hope were packaged up in the potential for new international business due to a weaker pound, and employment levels remaining steady. This may be scant consolation if this Brexit hangover lasts much longer.
“But with business optimism at its most fragile since February 2009, the sector will be looking for strong, significant monetary policy decisions tomorrow, whether it is a change to interest rates or easing bias, to avoid this downward slide becoming the economic landscape for the months and years ahead. This dramatic drop in overall activity will be a reality check as much as it is unsettling, but it is just one month’s worth of data and the next month will be more revealing.Comment
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Another reason to avoid the Guardian:
Clear nonsense that is talking down the economy! The fall in the value of GBP is good news!PMI shows UK business costs rising due to weaker £ but selling price inflation unchanged. Points to profit squeezeComment
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The idea is that we sell more, not necessarily that profitability improves. Ideally profitability doesn't take a hit but we shall see. Current client has told suppliers to absorb any cost increase or lose the work.Originally posted by Old Greg View PostAnother reason to avoid the Guardian:
Clear nonsense that is talking down the economy! The fall in the value of GBP is good news!Comment
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Well, I'm not seeing any negative impact here. Time will tell.Originally posted by Old Greg View Post
As the report I posted states, orders are forecast to increase.Comment
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Absolutely! The sudden decrease in manufacturing, construction and services activity is a positive impact!Originally posted by GB9 View PostComment
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Brexit is certainly good news in this household. Boomed from the Brexit gravy train!Comment
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..and even more good news, as Europe is not being affected by Brexit.
Brexit's impact: So far, it's bad for the U.K., not Europe - CBS NewsI'm alright JackComment
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