What would you like us to do with the funds you've selected
By Cazenove Capital Management Friday June 29, 2012 at 09:45
Richard Jeffrey – 28 June 2012
Against the backdrop of continuing crisis in the Eurozone, it may seem rather parochial to be writing about the reliability of domestic GDP numbers. However, we believe that labour market data indicate that the domestic economy is healthier that the latest growth numbers from the ONS imply. So, rather than being in recession, it seems likely that activity in the economy is gradually strengthening.
The significance of this conclusion is that it would call into question the appropriateness of further quantitative easing – the pressure for which has built up significantly over recent weeks. Of course, it would not be the first time that the ONS has had problems with growth numbers; nor the first time that unreliable data has influenced policy decisions.
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Richard Jeffrey
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