2nd August 2011
Ajai Chopra, the IMF mission chief to the UK, raised the possibility that further spending cuts and tax rises would be needed; the IMF declared that the cost-cutting measures already enacted by the coalition government were not enough to halt a further economic slowdown.
The IMF's damning announcement came as the UK's manufacturing sector suffered its first contraction in two years.
As reported in The Guardian the Markit/CIPS manufacturing purchasing managers' index put activity at 49.1 – a figure below 50 signifies contraction. Analysts' had forecast a figure of 51.
Rob Dobson, senior economist at Markit said July's data was "a marked turnaround from the strong start made to the year".
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