The UK economy grew by 0.7pc in the three months to end-October, according to figures published today by the National Institute for Economic and Social Research (NIESR). The latest forecasts, which come on the back of worse-than-expected September industrial production data, more or less confirm that the economy will not grow by the 2.0-2.5pc expected by the government for 2002.
However, the well-respected think tank is not calling for a cut in interest rates, when the Bank of England rate-setting meeting ends on Thursday. "Manufacturing output remains weak but the service sector appears to be performing reasonably strongly," said NIESR research director Martin Weale.
Official figures earlier from National Statistics showed manufacturing output in September falling 0.4pc from a month ago for a year-on-year drop of 2.6pc, against expectations of 0.2pc and 2.5pc respectively. Meanwhile, UK industrial output in September also fell by a larger than anticipated 0.3pc, leaving it 2.5pc down on the year. Expectations had been for a 0.1pc monthly decline for a 2.4pc year-on-year drop. //www.fxcentre.com