Services down but auto manufacturing up

Two very contrasting stories from the BBC Business website this morning…

According to the SMMT, UK new car registrations rose 5.3% in 2012 to 2.04 million – the highest level since 2008.  Moreover last year’s growth rate was the fastest in 11 years, mainly due to a 12.9% rise in demand from private individuals, who bought 106,346 vehicles.  Even so the auto manufacturing market is essentially a B2B business, with corporate or business customers purchasing nearly 95% of total output.

On the other hand, according to a survey by Markit, activity in the UK’s services sector fell for the first time in two years in December.  The index was down to 48.9 in December, down from 50.2 in November (a score below 50 indicates the sector is shrinking).  Given the importance of services within the UK economy, this suggests that there might another recession.

This entry was posted in Chap 02 Winning Customers, Sector: Hospitality & Tourism, Sector: Manufacturing, Sector: Retail and tagged . Bookmark the permalink.

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