After more than six years, Britain has clawed back all the economic output lost when the financial crisis struck in 2008. According to the latest monthly survey of the UK economy by the NIESR think tank, estimated that UK output grew by 0.9% in the three months ending in May.
Britain's manufacturing sector has posted its biggest annual rise in output since the start of 2011, suggesting the UK economic recovery may be broadening out across the economy. Manufacturing output rose by 4.4% between April 2013 and 2014, the biggest annual rise since February 2011. Despite this recovery, UK manufacturing output remains below its pre-crisis peak
With this strong recovery it now means that most economists expect the Bank of England to raise interest rates in less than a year - before either the U.S. Federal Reserve and most certainly before the European Central Bank.
There was some slightly more encouraging data from Europe suggesting factories in France and Italy bounced back in April.
French industrial production rose by 0.3% month-on-month in April, and March's reading has been revised up to -0.4% from -0.7% initially.And Italian industrial output jumped by 0.7% in April, more than reversing the 0.4% decline in the previous month. This was driven by demand for consumer goods and energy.
Greece has slid deeper into deflation, the Greek consumer prices index shrank by 2.1% on an annual basis in May, with prices falling by 0.6% compared with April. Prices of clothing and footwear have shrunk by 10.7% in the last year in Greece.
Greece's long recession, record unemployment and austerity programme have all contributed to falling prices
This morning we had Australian consumer confidence come in slightly higher than last month at 93.2, but still well below the 100 level needed to show a neutral reading, the Australian dollar rise against most of its peers a week.
Today the big news is the UK unemployment rate expected to fall from 6.8 to 6.7%. If unemployment falls it will show the economy is moving closer to “full capacity” and Mark Carney has suggested once full capacity is reached interest rates will rise.
09:30- GBP- UK unemployment expected to fall from 6.8% to 6.7%
09:30- GBP - Unemployment claimant count expected to fall by 25,000
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