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Economy
Thursday, April 1, 2010
Traction in recovery

Manufacturing data points to recovery gaining traction – prospect of further rate cuts diminishes

The latest manufacturing numbers published were exceptionally strong, with output rising by a full 3% on the month in December. The improvement is apparent in every sector, and is consistent with a broad-based recovery in manufacturing.  Car production in particularly stands out as the star performer, with production, on a seasonally adjusted basis, up more than 10%.
Most of the activity data released in recent weeks has been better than the market expected, pointing to a recovery that is beginning to accelerate. It looks increasingly likely that the fourth quarter GDP number will exceed 4%.
“In the face of increasing evidence that the recovery is gaining traction, the prospect of further rate cuts is diminishing,” says André Roux, head of fixed income, Investec Asset Management.
 

Copyright © Insurance Times and Investments® Vol:23.4 1st April, 2010
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