Signs that the market is entering a lull

Fund manager's comment

The economic outlook in the UK is gradually improving. Economic and corporate newsflow is positive, ...

The economic outlook in the UK is gradually improving. Economic and corporate newsflow is positive, equity valuations are healthy and estimates for growth are good. So what is driving this improving environment and what can we expect for 2004? A strong recovery in business investment and a recovery in exports are mainly responsible for this enhanced activity. Most companies are reporting profits above market expectations and are providing positive statements about their prospects. However, there is no doubt that cost-cutting has been the main driver of profit growth. Businesses have move...