Fears of double-dip recession ‘unfounded’ as UK services sector posts robust growth
Why are there no big cities in the South East? Because they are part of a London driven economic driver which runs from the South Coast to the Humber. The only really european scale “City Regions” are the struggling West Midlands and the more vibrant Greater Manchester. Newcastle, Bristol and Leeds are “bright points” in otherwise small scale economic systems.
Rural England has many interesting economic characteristics, more firms per head of population, lower wages, lower unemployment, more manufacturing businesses per head of population, strengths in agri-food and tourism. However as this article shows that doesn’t really amount to an economic pile of beans when compared to the defining virility of a South East based service sector driven by London as a world City.
It explains how fears of a double dip recession have been staved off yet again by good service sector results – telling us:
Service sector employment, which encompasses jobs from banking to retail, rose at its fastest rate for four years over the first quarter, according to the closely-watched Markit/CIPS survey.
Companies also reported a rise in volumes of new business, and said they were able to squeeze more business from existing clients.
On a monthly basis, the Markit/CIPS services PMI rose to 55.3 in March from 53.8 in February, far above the 50 level than divdes growth from contraction. Economists had expected expansion in the sector to slow in March, forecasting a fall in the PMI to 53.4.
David Noble, chief executive of the Chartered Institute of Purchasing & Supply, said the PMI data demonstrated that “fears of a double dip recession were unfounded”.
And the relevance of all this? Just a reality check about what rural economic development can or cant actually change in the overall scheme of things – perhaps I am being too defeatist!!!!!?