A two-speed economy

Manufacturing remains under pressure in what is now deemed a two-speed economy. The gap between the old economy and the new one is getting wider as interest rate cuts fail to weaken the pound. A weaker pound would have ensured that manufacturing could benefit from cheaper exports prospects. However, rate cuts have fuelled the housing market and sent the sector booming. Geoffrey Lunt, an Investec fund manager, says: 'The greatest confusion is the contrast between the booming consumer sector and the depressed manufacturing one. Interest rates are low, hence consumer confidence is high a...