Thursday, May 24, 2012

European business activity falls to 3 year low in May 2012, BofE officer says Queen's Diamond Jubilee could harm UK economy

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5/24/12, "European business activity falls to near three-year low," BBC

"Activity at European businesses hit a near three-year low in May, according to a survey by Markit.

Its index, based on a survey of purchasing managers in the manufacturing and service sector, fell to 45.9 in May, a 35-month low.

In response, the euro fell to $1.2515 against the dollar, a 22-month low.

A summit of European leaders on Wednesday evening failed to boost confidence, as leaders disagreed over how to tackle the crisis....

"The survey is broadly consistent with gross domestic product falling by at least 0.5% across the region in the second quarter, as an increasingly steep downturn in the periphery infects both France and Germany," he said in the report.

Activity at French and German factories fell to the lowest level in almost three years, according to the Markit survey."...

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"The governor of the Bank of the England Mervyn King has warned that the Queen's Diamond Jubilee could reduce output."...

5/24/12, "UK economy shrank more than thought," BBC

"The UK economy shrank by 0.3% in the first three months of the year, more than previously thought, revised figures have shown.

Last month's initial estimate from the Office for National Statistics (ONS) showed a contraction of 0.2%.

The downward revision was due to a bigger contraction in construction output than previously estimated....

In the final three months of last year, the economy also shrank by 0.3%, meaning the UK is back in recession.

There are concerns that the UK economy will shrink again in the second quarter of the year - the governor of the Bank of the England Mervyn King has warned that the Queen's Diamond Jubilee could reduce output."...


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