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Tuesday, October 7, 2008

Production decline accelerating

Uk production is falling. In August it was down over 2 percent year on year.

This number is completely consistent with last week's productivity data, which showed a decline in output per worker. This means that firms are hoarding labour.

That is not going to go on for very long. Soon, we will see a shakeout, and unemployment will rise.

The inevitable consequence of Brown's boom and bust.

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