Economy: Purchasing Managers’ Index

Lord Davies of Oldham Excerpts

Thursday 11th April 2019 Lords Chamber

[Lord Bates]

Given that it is hard enough to answer for the UK Government in your Lordships’ House, I will not attempt to answer for other Governments. However, I believe that the resilience we are seeing in the British economy is a tribute to a number of factors: the fact that the UK remains a prime location for foreign direct investment—we have the largest stock in Europe and the third largest in the world—and Forbes identified the UK as the number one location to invest and set up a business in 2018 and in 2019. All those factors—low taxation, a competitive economy and great skills—are the reasons why people are backing Britain.

[Lord Davies of Oldham (Lab)]

My Lords, this Question started on the manufacturing industry, with a reference to the German motor car industry. Is it surprising that Germany is having some problems with its exports, first, in relation to Brexit, and secondly, to standards in the industry, which have caught the Germans out rather badly in recent years? However, four-fifths of the British economy is services, so what is all this jubilation—false jubilation—about manufacturing when in fact our service industries are showing the real pressure at present, and they are not in position to stockpile in quite the way that manufacturing is?