UK set for industrial rally

rebound in manufacturing sector will bring an end to the two-speed UK economy, says L&G

Legal & General forecasts the end to the two-speed UK economy with a recovering manufacturing sector at a time when value has been exposed by falling markets. It warns, however, that for a sustainable market recovery, a return to growth by the US may be crucial. The US market is far less well placed, according to Andrew Clare, financial economist at L&G, who said mid-term congressional elections and talk of war in Iraq will continue to affect investor sentiment. This means the market will continue to trade nervously, he said. While Euroland markets face an even more volatile time, ...