29 October 2001, 09:22  OUTLOOK UK economic data next week to show rising consumer credit, fall in PMI

LONDON (AFX) - UK economic figures due out this week are expected to show a rise in consumer credit but a further decline in the manufacturing sector, confirming imbalances in the economy, according to economists.
Bank of America economist Jeremy Hawkins said of the consumer credit figures: "The signs are that we are going to get at least a small pick up and if that is confirmed it will be in line with the view that the UK consumers sector is actually withstanding the global slowdown better than most other country." .
Economists predicted the Chartered Institute of Purchasing Surveyors will release figures showing a slowdown in the manufacturing sector to 45 from 46.5, raising the chances of a Bank of England interest rate cut. .
Schroder Salomon Smith Barney economists predicted the PMI for September will reflect the weakness in equities and last month's terrorist attacks against the US.
"But there is little to fall back on as guidance for the behaviour of surveys during such unusually uncertain times. Such a reading would take the index close to the 41.5 low seen at the end of 1998," they said.
"Such reading would add to the likelihood of a rate cut," they added.
AFX CONSENSUS PREVIOUS

MONDAY OCT 29
Sept consumer credit (bln stg) 1.3 1.2

THURSDAY NOV 1
Sept manufacturing CIPS index 45 46.5

© 1999-2024 Forex EuroClub
All rights reserved