British economic figures encouraging

 British economic figures encouraging, better than expected: experts 

The positive Purchasing Managers's Index (PMI) figures for the British economy released this week bodes well for the British economy, experts said here on Friday.The recent data "suggests we are looking at about 0.2 percent GDP growth quarter-on-quarter, which is better than what the Bank of England (BOE) and the Office for Budget Responsibility (OBR) are expecting; they are arguing for 0.1 percent, and our own forecast is for 0 percent growth," said George Buckley, chief British economist at Deutsche Bank.kitchen knives 

However, Buckley said there was "no guarantee we will get that growth... These numbers often tell you more about the underlying pace of growth -- which is encouraging nonetheless because it is 0.2 percent."The PMI services sector figures for March released on Thursday registered 52.4, up from February's 51.8, the best figures for seven months. A reading above 50 indicates expansion."The numbers are certainly better than we thought. Services is doing the best, but a PMI of 52.4 is still a relatively weak rate of growth for the services sector compared to its long-run average but it is still better than what we had forecast,Cast iron tubs" Buckley said.The service sector accounts for 77 percent of the British economy.Meanwhile, the manufacturing sector recorded a slower rate of contraction, with a PMI of 48.3 for March against 47.9 for February. The construction sector PMI also recorded a slower rate of contraction at 47.2, up from a 40-month low of 46.8 in February. 

The all-sector PMI registered 50.9 in March, up from 50.7 in February but below January's recent peak of 51.7.The resulting average reading for Q1 2013 of 51.1 is above Q4 2012 average of 49.8,Antique tubs and would be enough to move Britain away from a technical recession,Clawfoot tub faucets which would have been its third since the onset of the financial crisis in 2008.Howard Archer of IHS Global Insight said he expected British GDP to grow by 0.1 to 0.2 percent quarter-on-quarter for the first quarter of 2013."It is not just the fact that services activity was reported to have grown at the fastest rate for seven months in March that was encouraging but also the generally improved tone of the survey," he said. 

"Incoming new business expanded at the fastest rate for 10 months in March which is supportive to further services growth in the near term at least. Further encouraging news saw service companies' expectations improve to a 10-month high in March while employment in the sector rose modestly for a third month running," he added.Archer said the services sector could build on its positive start to 2013, but warned that service companies currently still face an uncertain business outlook and tightening government spending."In addition, there are still significant pressures on consumers which are likely to limit the upside for their spending on services for some time to come,Clawfoot tubs" he said.