Defaqto expects economic recovery within months

| August 7, 2009 | 0 Comments

Britain will drag itself out of recession and into economic recovery within months, a financial expert claimed this week.

Michael Baxter, economist at financial data research firm Defaqto, said recent research by the Chartered Institute of Purchasing and Supply (CIPS) shows the green shoots of economic growth will begin to emerge in the near future.

The CIPS/Markit Purchasing Managers’ Index for manufacturing, published this week, shows a reading of 50.8 for July.

This is the first time the index has broken the 50 point barrier since March 2008, and signals a return to growth.

“Reports from CIPS have been pretty clear for quite some time so it is a mistake to ignore these reports,” Baxter said.

“The CIPS report is another bit of evidence of [the recession ending].”

Given that recovery is on its way, the Bank of England was “mistaken” to expand its quantitative easing programme, he added.

The CIPS report also showed a slowdown in the rate of job losses during July.

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