Fund Managers Remain Optimistic About 2013
As the FTSE continues its climb higher, signs that the UK economy is not in such good shape are filtering through.
Only a few weeks ago, we had the Capital Perspectives survey, which polls 200 fund managers. The survey showed that general optimism about our economic prospects were at their highest levels since the survey was started back in 2011.
Other business and retail surveys this year have also had a rather positive slant to them, but the PMI surveys have indicated otherwise.
The most recent construction and services PMI surveys fell by more than expected, and last week's trade balance did not give any encouraging signs for our exports.
In addition, the retailers have reported how tough Christmas trading was and today's business surveys have shown falling business confidence.
None of this will do anything to help boost confidence, which is a critical ingredient when it comes to businesses and consumers loosening their belts to boost the economy.
There are differing opinions as to whether Q3's impressive rebound to 0.9% GDP was maintained into Q4, but it won't be long before we'll get the first snapshot, which is due for release on 25th January.
Nevertheless, there is still a degree of optimism out there and some signs of gradual improvement in activity.
Of course, there are plenty of doom mongers out there, expecting anaemic growth for the year. However, in general, growth forecasts have been in the region of 1% for 2013, with the government's funding-for-lending scheme expected to assist in boosting demand.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Simon Denham, 14 January 2013