John Butler Recovery Quotations

The recovery is still being held back by the weaker consumer outlook.

Overall the recovery in business investment has proved disappointing, despite companies being cash rich.

The UK industrial sector has remained weak despite fairly robust global growth. Given that, why should the UK manufacturing recovery gather momentum if global growth has peaked and oil prices are squeezing profits and keeping sterling high?

The story on the activity side is that the recovery is a reflection of better domestic demand, but export orders are contracting at their fastest pace since May. This suggests the UK is still failing to benefit from good global growth.

The dilemma the MPC face is whether they respond to the growing doubts over the extent of economic recovery this year or feel constrained by the rebound in the housing market. Different members seem to put different weights on these arguments.