News on the UK economy just gets worse and worse. Snapshot on Wednesday, the grim manufacturing removes a reason to be the last remaining optimistic about the prospects of a modest recovery in the UK.
It is true that there are one or two of the mitigating factors that need to be taken into account. There was the impact of supply chain of Japanese earthquakes, which left some companies in the United Kingdom of short parts. Is closed in the late timing of the Easter Holiday, and a large number of holidays has led to the factories for a longer period than usual in April, and may have had indirect effects in May.
It is true that there are one or two of the mitigating factors that need to be taken into account. There was the impact of supply chain of Japanese earthquakes, which left some companies in the United Kingdom of short parts. Is closed in the late timing of the Easter Holiday, and a large number of holidays has led to the factories for a longer period than usual in April, and may have had indirect effects in May.
But even in the wiliest of spin doctors and a daunting task to put a decent gloss on the report of the PMI by the CIPS / Markit. It's not just a significant decline in overall activity. Nor was this production has fallen below the level that usually portends a recession, because that can be attributed to factors at once. Instead, it was in order that the books were in the downward path is clear and is now completely dry.
Again in January, the index system to protect the identity of citizens Marquette for new orders to 64.9 healthy - much higher than the cut-off point of 50, the dividing line between growth and decline. Since then, the outlook darkened, with a system of books dipping to 50.8 in April, and declined further to 48.3 in May.
Why the slowdown is happening? It is probably a combination of three factors. The first is that the pick-up from last year in the area of manufacturing, which has always been something of a mirage, since it shares many of the companies re-configured after running down their inventories during late 2008 and 2009.Now that stocks are back to more normal level, and the books will always be vulnerable to weakness in demand.
What is happening now. The research showed that Ipsos Mori today that only 10% of Britons consider the state of the economy to be good, making the United Kingdom and one of the most pessimistic in the world. This pessimism seems fully justified and given the fierce pressure on real income and the severity of the tightening of government finance, it has led to a slowdown in domestic demand. The report showed Wednesday that the collapse of consumer goods are being hit harder than investment goods.
Again in January, the index system to protect the identity of citizens Marquette for new orders to 64.9 healthy - much higher than the cut-off point of 50, the dividing line between growth and decline. Since then, the outlook darkened, with a system of books dipping to 50.8 in April, and declined further to 48.3 in May.
Why the slowdown is happening? It is probably a combination of three factors. The first is that the pick-up from last year in the area of manufacturing, which has always been something of a mirage, since it shares many of the companies re-configured after running down their inventories during late 2008 and 2009.Now that stocks are back to more normal level, and the books will always be vulnerable to weakness in demand.
What is happening now. The research showed that Ipsos Mori today that only 10% of Britons consider the state of the economy to be good, making the United Kingdom and one of the most pessimistic in the world. This pessimism seems fully justified and given the fierce pressure on real income and the severity of the tightening of government finance, it has led to a slowdown in domestic demand. The report showed Wednesday that the collapse of consumer goods are being hit harder than investment goods.
Until recently, it was convincing to softer demand from the home by a recovery in exports, with companies able to use 25% of the devaluation of the pound sterling to increase overseas sales. But the decline in European and Chinese PMIs show that the slackening of the international application as well, resulting in lower third respectively in the order books of the export companies in the United Kingdom.
Manufacturing accounts and the fifty-eighth to produce one of the UK, so we will have to wait for the PMIs for construction and services over the next two days to get a more complete picture of the state of the nation. But the decline in demand for mortgage financing from already low levels, and revealed by the Bank on Wednesday, figures from England, and suggests that growth in the second quarter of 2011 is unlikely to match the 0,5% in the first place. Indeed, the sharp fall in the pound sterling after the manufacturing PMI is a sign that financial markets in the United Kingdom believe that moving dangerously close to double-dip recession.
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