Oh dear (TM)
You mean 33 economists may not have got it right? Shock, horror!
U.K. Economy Unexpectedly Shrinks in Longest Slump
http://www.bloomberg.com/apps/news?p...d=aoJTUKcx.E9A
Oct. 23 (Bloomberg) -- U.K. gross domestic product unexpectedly dropped in the third quarter as enduring slumps in services, manufacturing and construction kept the economy mired in its longest recession on record. The pound tumbled.
Gross domestic product dropped 0.4 percent from the previous three months, the Office for National Statistics said today in London. Economists predicted a 0.2 percent increase, according to the median of 33 forecasts in a Bloomberg News survey. None forecast a contraction. The economy has now shrunk over six quarters, the most since records began in 1955.
The figures add to Prime Minister Gordon Brown’s woes as he struggles to cement a recovery in time for a general election due by June and suggest Bank of England officials may extend their bond-purchase program on Nov. 5. Chancellor of the Exchequer Alistair Darling said today he stands by his forecast that the economy will start growing this year.
“The fact that the economy is still contracting despite the huge amount of policy stimulus supports our view that the recovery will be a long, slow process,” said Vicky Redwood, U.K. economist at Capital Economics Ltd in London. “An extension to QE at the upcoming November meeting now looks even more likely.”
The pound fell 1 percent to $1.6460 after the figures. The yield on the two-year U.K. government bond slipped 5 basis points to 0.87 percent as of 9:51 a.m. in London.
You mean 33 economists may not have got it right? Shock, horror!
U.K. Economy Unexpectedly Shrinks in Longest Slump
http://www.bloomberg.com/apps/news?p...d=aoJTUKcx.E9A
Oct. 23 (Bloomberg) -- U.K. gross domestic product unexpectedly dropped in the third quarter as enduring slumps in services, manufacturing and construction kept the economy mired in its longest recession on record. The pound tumbled.
Gross domestic product dropped 0.4 percent from the previous three months, the Office for National Statistics said today in London. Economists predicted a 0.2 percent increase, according to the median of 33 forecasts in a Bloomberg News survey. None forecast a contraction. The economy has now shrunk over six quarters, the most since records began in 1955.
The figures add to Prime Minister Gordon Brown’s woes as he struggles to cement a recovery in time for a general election due by June and suggest Bank of England officials may extend their bond-purchase program on Nov. 5. Chancellor of the Exchequer Alistair Darling said today he stands by his forecast that the economy will start growing this year.
“The fact that the economy is still contracting despite the huge amount of policy stimulus supports our view that the recovery will be a long, slow process,” said Vicky Redwood, U.K. economist at Capital Economics Ltd in London. “An extension to QE at the upcoming November meeting now looks even more likely.”
The pound fell 1 percent to $1.6460 after the figures. The yield on the two-year U.K. government bond slipped 5 basis points to 0.87 percent as of 9:51 a.m. in London.
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