The gloomy start to 2016 has extended to a second week. A dire set of industrial production figures for November set the tone for the pound to weaken further, while equity markets failed to regain last weeks losses. And the MPC added to the downbeat mood by downgrading its short-term forecasts for growth and inflation alongside its entirely predictable decision to keep monetary policy unchanged.But recent developments are by no means all negative for the UK economy. Results released this week by some of the UKs biggest retailers suggest that the high street enjoyed solid Christmas trading, while the renewed fall in the oil price promises to extend consumers sugar rush still further. Given the importance of the consumer to the UK economy, the promise of another strong year of spending growth should be enough to offset the drag from industry.
