(Source: Belfast Telegraph)
STRONG evidence of recovery in the service sector emerged
yesterday, as the Bank of England's monetary policy committee
prepared to make its announcement, at noon today about an extension
of its quantitative easing strategy.
Economists predict an extension of the programme of at least
Pounds 50bn. One forecaster says unemployment may hit 3.5m in 2010.
The Chartered Institute of Purchasing and Supply (CIPS) followed
an upbeat assessment of prospects for manufacturing, with an even
more significant and optimistic report on confidence in the service
sector.
The CIPS/Markit survey showed that the sector expanded for the
sixth month in succession in October. The headline business activity
balance at 56.9 was higher than market expectations and above the
long term series average. A reading of more than 50 indicates
expansion.
However, the survey also showed that the private sector is still
shedding jobs. Accountants PriceWaterhouseCoopers predicted that
unemployment would rise next year and peak at 3.5m.
John Hawksworth, head of economics at PricewaterhouseCoopers,
said: "We do expect a gradual recovery. Predicted growth of 1% would
not be enough to stop unemployment rising. The level of GDP would
also not return to its pre-recession peak until mid 2012 in our main
scenario".
(c) 2009 Belfast Telegraph. Provided by ProQuest LLC. All rights Reserved.
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