RBS Bank held an interesting Economic briefing in Exeter yesterday which Sue from Dymond Engineering attended.
A member of RBSs Chief Economist’s office presented his views on the current Economy and views for the future and it was encouragingly positive with growth at 3% year on year.
Those sectors contributing to growth in the national economy were closely mirrored in the Devon economy, particularly relating to the hotels & restaurants sector. Manufacturing and engineering also contributed to growth in the national and Devon economy but less strongly than the consumer-led sectors.
In the economist’s view the economic recovery is set to continue and is no longer fueled by consumer spending, though it is dependent upon meaningful wage increases. Accordingly he projected that interest rates could start increasing by 0.25% at the beginning of 2015 and continue to rise 0.25% each quarter through next year. However there are still a number of uncertainties and risks in the global economy which could keep interest rates where they are.
The general positivity was cautiously shared by those in the room, many of whom were from manufacturing and engineering businesses in Devon.