- George Osborne, Chancellor of the Exchequer
Britain's services sector, the engine of the UK economy as it accounts for 78% of the nation's GDP, expanded at a faster than expected pace in November, alleviating concerns of slowing economic recovery in the UK. Markit/CIPS services PMI rose to 58.6, compared with the previous month's reading of 56.2 points. Markit's reports published earlier this week also showed activity in the UK manufacturing sector rose to the highest level in four months of 53.5 in November, compared to an upwardly revised indicator of 53.3 in October, and remained in expansion area for the 21st straight month.
Meanwhile, UK Chancellor George Osborne said that the Office for Budgetary Responsibility revised the UK's economic growth outlook upwards from 2.7% to 3% for the current year. In 2015 the OBR expects a 2.4% growth, which will subsequently decelerate to a 2.2% pace in 2016. Osborne also expects wage growth for the next five years, with the unemployment rate to settle at 5.3%. Regarding inflation, the OBR considerably revised down the outlook and it now projects CPI inflation to fall to 1.5% this year, 1.2% in 2015 and 1.7% the year after, before it returns to the official goal of 2%. It had previously estimated that consumer prices would only decline slightly below the Bank of England's target of 2.0% this year before returning to that level.
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