According to the British Chamber of Commerce, or the BCC, engineering plants have been busy once again in the West Midlands. The plants will be providing specialized parts to the German car industry.
David Kern is the chief economist with the BCC. He says that manufacturing in Britain has been more successful than services for three quarters now. “We have not seen that for a very long time”, he says. Dr Kern says that the increased business in manufacturing is due to the prevailing effect of the exchange rate. The British Chamber of Commerce says that manufacturing will grow by 3.3%, while services will only increase by 1.4% in growth.
Still, it is not known if the significant growth in manufacturing is due to a prompt snap-back following the economic recession. Furthermore, it is unclear on whether or not this growth can be continued.
The economy in Britain is recovering slowly, and unemployment will continue to rise throughout 2011. Dr Kern has stated that the economy is “clearly slowing”, and that the “same global imbalances that caused the crisis” have become evident even today.
He has also stated that the Bank of England could be forced to enter yet another round of quantitative easing. This will help to offset budget cuts and bring Britain’s economy back to a sustainable spot. Charles Bean, the Deputy Governor of the Bank of England says that quantitative easing will be possible, and that “further policy action” will likely be essential to a full recovery of the economy.Ba
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