The UK leading indicator of overall economic activity rose for the seventh straight month in October, pointing to continued improvements in the economy for the first half of next year. The index for October rose to 103.7 from September's revised 102.3, according to economic and financial research group NTC. NTC said the rise in the indicator to its highest level since March continues to suggest that the UK economy is likely to improve during the first half of 2004.
However, it added a note of caution when it said that revisions to the figures may occur as changes to component series data are likely in the coming months. However, NTC also said consumer confidence had a negative influence on the indicator during October. The research group said its coincident indicator slipped for a third successive month to 100.7 in September from August's revised 100.9.
"The change in direction (of the coincident indicator) in the third quarter principally reflects the stronger than expected negative effects in July and August of industrial production and manufacturing employment," it said. //www.fxcentre.com