- Rob Dobson, an economist at Markit
Activity growth in the British manufacturing sector accelerated in November to the fastest pace in four months, as domestic demand offset subdued exports due to falling orders form the Euro zone as well as emerging markets. According to Markit Economics, manufacturing PMI climbed to 53.5 in November up from a revised 53.3 a month earlier, with a reading above the 50-mark threshold indicating growth in the sector. The report highlighted the UK's further reliance on domestic demand, as export orders declined for a third consecutive month. Last week, data showed a rise in consumer spending boosted the nation's economy, which enjoyed seven straight quarters of growth in the three months through September. Chancellor George Osborne has highlighted that the UK's economy is being hurt by weakening economies in the Euro zone, as well as elsewhere. Early data suggest factory output might slow towards the end of the year as the UK's major trading partners have weakened. Projections of the Bank of England also point GDP is expected to decelerate at the end of 2014. Meanwhile, a separate report showed the number of UK mortgage approvals dropped to the lowest level in more than a year in October. Approvals fell to 59,426, compared with 61,234 in September, the Bank of England said. The British housing market has lost momentum recently after the BoE introduced new restrictions on risky lending and warned of the risk of a property bubble.
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