For all things about the UK economy & equity markets.
The FTSE is looking good at the moment, despite the 'unexpected' recent data that suggests a worsening economy, or at best, just flatlining?
http://www.marketwatch.com/story/bri...nks-2011-01-06LONDON (MarketWatch) — Activity in Britain’s services sector saw a marginal but unexpected contraction in December, with business hit by poor weather as well as an overall decline in demand, according to a closely-watched, monthly survey of purchasing managers released Thursday.
The Markit/CIPS purchasing managers index for the services sector fell to 49.7 from a reading of 53.0 in November. Economists had forecast a more modest decline to 52.5.
A reading of less than 50 indicates activity fell, while a reading of more than 50 indicates growth.
Marginal? An outright contraction more like it! Tell it how it is MW?
So the largest component of the British economy contracts substantially to contraction and the market goes up another 50 points?The reading on the services sector, the largest component of the British economy, follows data earlier this week on manufacturing and construction.
VAT has also gone up to 20% as from Jan 1, so the already worse-than-expected retail figures for Dec had the benefit of a last ditched splurge from shoppers wanting to avoid the higher tax.A gauge of construction fell in December to 49.1 from 51.8 the previous month, CIPS and Markit said yesterday. An index of manufacturing rose to 58.3, the highest in 16 years, from 57.5 in November as the weaker pound helped drive export orders, the groups said Jan. 5.
Public sector employees also face the start of the governments austerity drive to contain costs by joining the unemployed que.
Somethings gonna give .................sooner or later?UK National Debt - how Britain owes over £900 billion
The Government forecasts it will soar to an eye-watering £1.1 trillion by 2011. To put that in perspective, the UK went bust in 1976 running a budget deficit of 6% of GDP. In 2010 that deficit is going to top 11%.