You have to go back nearly seven years, to the aftermath of the dot.com crash, to find British industrialists so glum about their prospects for output.
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There will be no nonsensical Christmas shopping rush to New York this year. The dollar’s great revival has made glossy shopping better value back home.
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Inflation is heading for a peak at around five per cent – or possibly more – in the coming months as the latest round of gas and electricity prices feeds through into utility bills, while the economy grinds to a near standstill this winter.
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The conventional reason why most bank shares are cheap is that nobody quite believes that they have come clean about all the dud assets lurking in their balance sheets.
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The Bank of England gave no explanation when it held its official interest rate at five per cent for a fifth month, after its interest-setting monetary policy committee split three ways in its vote in July.
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The Royal Bank of Scotland raised £12 billion, Barclays £4.5 billion, HBOS £4 billion, even poor tattered Bradford & Bingley scraped home with its fund-raising in the end.
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A sharp dip in output of electrical and optical equipment – a segment which includes computers and electronic components – drove the total for manufacturing as a whole into reverse for a second month running in June.
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The slowdown in activity across Britain’s service economy steadied last month, although the rate at which service employers are cutting jobs speeded up.
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This week it is the turn of the Passport Office to face the public sector unions’ campaign to test the Government’s determination to stick by pay deals that no longer match inflation.
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Gloom has descended on the boardrooms of British industry over the past three months and the CBI fears that manufacturing may be in a “technical recession”, with output shrinking in both the second and third quarters of this year.
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Few cries of pain in the West Midlands greeted the Bank of England’s decision to leave its official interest rate at 5.0 per cent for a fourth month.
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