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By HaleStewart April 25, 2014 11:03 am
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UK Recovery Gaining Momentum

The UK started to print solid economic numbers in mid-2013.  However, as this was a nascent recovery, caution was warranted.  Now that we’ve had 6-9 months of solid numbers, it appears the UK is on its way to solid growth in the near future.  Let's take a look at the numbers.

The top chart shows the UK manufacturing PMI while the bottom chart shows the services PMI.  Both show an increase starting at the beginning of 2013.  This rise topped mid year and moved lower.  However, the decline can be attributed to a simple move lower from a sharp rise.  Both numbers are in the solid expansion territory.

As a result, the year over year rate of change in industrial production has turned positive over the last six readings.

As a result of the increased activity, unemployment has been dropping and

GDP growth has been accelerating. 

We've seen enough data now to indicate the UK recovery is entrenched and moving forward.

Hale Stewart is a former bond broker who has been writing about economics and financial markets since 2006 on the Bonddad Blog.  He is also a tax attorney with a domestic and international practice while also forming and managing captive insurance companies for US companies.   You can follow him on twitter at:@captivelawyer

 

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