Pundits have brought forward the moment of the first tightening of monetary policy to July after tod...
Pundits have brought forward the moment of the first tightening of monetary policy to July after today's publication of industry output figures for April, which showed that exports surged and industrial output rose for the first time in 8 months.
Previously, many throught that a rise would not occur until August, particularly after reports that quarterly GDP statistics published by the Office for National Statistics would likely be revised downwards.
However, today's figures indicate that the long suffering manufacturing sector could be turning up, also supported by the ONS' decision to revise upwards its figures for industrial output in March, to -0.2% from -0.4%.
Analysts are now being quoted as saying they expect an upwards revision of first quarter GDP figures due from the ONS next month will coincide with another month of manufacturing recovery, leaving the Bank of England with little choice but to start raising interest rates in July.
The pressure to raise rates is also coming from abroad, with other figures also published today indicating that global exports grew 2.6% during April, helped along by continued US economic recovery.
Europe too is pushing the UK economy along, as the vehicle manufacturing sector continues to do well, with many cars exported into the EU from factories belonging to Japanese, German and French automobile companies.
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