Its the longest slump since Britain began keeping records in 1955, and yet the contraction data is “unexpected.” Who are these people that are always “confounded”?
“Initial data on British third-quarter growth showed the economy there remained mired in recession, while survey releases from the euro area Friday presented a picture of steadily improving economic activity. A preliminary release from the Office of National Statistics in London showed that Britain’s economy remained deep in recession during the third quarter. Gross domestic product contracted by 0.4 percent between July and September from the previous three months and shrank by 5.2 percent compared with a year earlier, the agency said.
The data confounded analysts, who had expected a 0.2 percent growth on the quarter, based on recent improvements in housing, purchasing managers’ indexes and the weak pound, which should make exports more competitive.”
“Confounded”? Really . . . ?
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Over reaction: BRITISH POUND (S.B.S) Dec 2009
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Sources:
U.K. Economy in Recession for 6th Straight Quarter
MATTHEW SALTMARSH
NYT, October 23, 2009
http://www.nytimes.com/2009/10/24/business/global/24euro.html
U.K. Economy Unexpectedly Shrinks in Longest Slump
Jennifer Ryan
Bloomberg October 23, 2009
http://www.bloomberg.com/apps/news?pid=20601087&sid=aA4yuANivXCQ
U.K. Economy Shrinks 0.4% in Third Quarter
ALISTAIR MACDONALD and LAURENCE NORMAN
WSJ, October 23, 2009
http://online.wsj.com/article/SB125628626596003463.html
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