"UK industry needs 0.25% cut in interest rates":
This article was originally published in Clinica
Executive Summary
UK industry needs a 0.25% cut in interest rates, says the Trades Union Congress (TUC), the manufacturing and services sectors' main representative body, in order to encourage investment. Its calls come despite relatively positive GDP data that puts overall output growth at around 1.9%. Although this is in line with treasury predictions, temporarily easing the pressure on increased investment, manufacturing continues to suffer, says the TUC. "Manufacturing output is contracting by around 6% annually," Ian Brinkley, TUC senior economist, told Clinica. Although the overall economy is buoyed by 3.6% growth in the services industry, it remains below the long-term average for the UK. The Association of British Health-Care Industries (ABHI) has echoed these concerns, particularly in view of the strength of sterling (see Clinica No 991, p 7). The TUC is due to publish its budget submission on February 11 and discuss it at its pre-budget conference on February 28.