The UK government is taking steps to rebalance the economy away from services (especially financial) and debt-financed private spending toward manufacturing, with hopes that robust growth in industrial output will support economic recovery. Is this viable?
The recent PMI surveys and the Office for National Statistic (ONS) data point to strong growth in the manufacturing sector. The UK manufacturing PMI was at 61.5 in February, unchanged from January’s record-high reading. According to the survey, growth in output, new orders and export business was close to the fastest since the[...]