...High frequency data continue to point to positive, but weak, underlying growth. Manufacturing activity appears to be drifting slowly downwards, with the PMI survey now having reported five successive months of contraction, which is largely a function of weak export demand, particularly from the Eurozone. However, the weakness in manufacturing continues to be offset by modest expansion in activity in the services sector, where the PMI survey reports that growth in new orders has strengthened in recent months. Some business surveys have picked up evidence of a slight lull in activity in August at the time of the Olympic Games, but on a much more limited scale than the disruption caused by the additional bank holiday in Q2. Furthermore, with the ONS attributing all of the revenue from ticket sales and the sale of the television rights to Q3, it appears likely that the Olympics will have provided a modest net boost to the economy. With the impact of June s extra bank holiday also unwinding,...
