Sunday, November 16, 2014

Another Cunning Plan

Governments like to claim that they are in charge of the capitalist economy and by skilful manoeuvres can turn a slump into a boom, but further evidence that the UK economic recovery is losing some momentum came from the dominant service sector this week. 'The latest Purchasing Managers Index survey for the sector showed a score of 56.2 for October, down from 58.7 in September and the weakest reading since May 2013. The sector is still expanding rapidly, any score over 50 indicates growth, but the slowing pace adds to the sense of the UK's 'escape velocity' beginning to wane.' (Investors Chronicle, 7 November) In addition,despite previous optimistic forecasts, PMI data from the services sector in Europe remains anaemic with France's service sector shrinking at its fastest pace in four months and German service sector growth at a seven-month low. Politicians don't control capitalism's markets - it  is the other way about.  RD

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