Press Room: 09 Jul 10
CBI's weekly update on vital business news
- As expected, the Bank of England's Monetary Policy Committee voted to leave interest rates unchanged at 0.5% and to maintain its programme of quantitative easing at £200bn. The CBI commented that while a slight upward nudge in rates might be required towards the end of the year, it would be premature to start now.
- Industrial production rose strongly in May (0.7%) offsetting the decline reported in April, but growth in manufacturing output was less rapid (0.3%) only partially compensating for the fall a month earlier. The underlying trends (as measured by the 3 month-on-3 month rate of growth) strengthened further to 2.0% and 2.6% respectively.
- The most recent CIPS/Markit Purchasing Manager Indices (PMIs) suggested that the pace of growth in the service sector slowed somewhat in June. Activity within the construction sector rose for the fourth consecutive month.
- According to Halifax, house prices fell by 0.6% in June, the third consecutive monthly decline. Underlying house price inflation (as measured by the 3 month-on-3 month rate of growth) also fell for the third successive time, with the pace of decline accelerating somewhat to-0.6%.
For further information contact: alpesh.paleja@cbi.org.uk
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