Breaking with its recent more cautious tone on interest rate movements, EEF believes the Bank of England should cut rates again in the face of a significant weakening of activity indicators and a poorer international outlook. Tighter credit conditions for the consumer and business, as well as a clearer slowdown in the housing market are also impacting on consumer confidence.
Commenting, EEF Chief Economist Steve Radley, said:
“The evidence from the past month points to a growing risk of a weaker economy at home and abroad. While manufacturing has been in good shape, it would not be able to escape the negative effects of a downturn in domestic and export markets. The Bank therefore needs to act quickly to offset the impact of deteriorating financial conditions on the UK economy.”
ENDS