Hidden in the depths of the BBC is an article pointing out that the UK manufacturing sector has grown! Thankfully there are less biased organisations out there, who make this good news easier to find. The BBC is still blaming the UK & USA for the problems in Egypt. Bloody BBC! - but I'll save that for another time!
Back to the good news - after last week's disappointing negative growth, or flat growth, depending on if you take out the factor of snow (which yes, is actually crucial), today the Chartered Institute of Purchasing and Supply (CIPS) has announced that the UK manufacturing sector has expanded at its fastest pace since records began.
The boost has come from surprisingly high levels of demand from within the UK and abroad. But in the messed up economy we have inherited from Labour, high growth is actually bad. Bad I say.
How can growth in manufacturing be bad I hear you ask? Didn't evil Thatcher crush it 30 years ago? Surely a revival is good? Nope, nada. The growth is leading to inflationary pressure and as I've explained before, inflation in the UK economy right now, is very bad. The problem here is that the manufacturing sector uses a lot of raw materials and the cost of these materials is also rising at a high rate, leading to cost-push inflation (simply costs pushing up prices). More inflation will lead to the MPC voting for an increase in interest rates and then things really get tough.
Back to the good news - after last week's disappointing negative growth, or flat growth, depending on if you take out the factor of snow (which yes, is actually crucial), today the Chartered Institute of Purchasing and Supply (CIPS) has announced that the UK manufacturing sector has expanded at its fastest pace since records began.
 |
| Good news for manufacturers |
The boost has come from surprisingly high levels of demand from within the UK and abroad. But in the messed up economy we have inherited from Labour, high growth is actually bad. Bad I say.
How can growth in manufacturing be bad I hear you ask? Didn't evil Thatcher crush it 30 years ago? Surely a revival is good? Nope, nada. The growth is leading to inflationary pressure and as I've explained before, inflation in the UK economy right now, is very bad. The problem here is that the manufacturing sector uses a lot of raw materials and the cost of these materials is also rising at a high rate, leading to cost-push inflation (simply costs pushing up prices). More inflation will lead to the MPC voting for an increase in interest rates and then things really get tough.
