mpc: 15 The apparent weakness of the most recent consumption and investment indicators contrasted
with the relatively strong output indicators for 2006 Q1. For example, the CIPS/RBS services business
activity index had risen to its highest level since early 2004, taking it well above the broad range it had
occupied for much of the past two years, and the index of production for January had been stronger
than expected. Taken at face value, the latest output indicators pointed to GDP growth above its
historical average in Q1. It was unclear as yet what the expenditure counterparts to that apparently
stronger output growth would be. As with investment, it was possible that the relationship between the
sectoral surveys and their corresponding output components in the official data had been affected by
structural changes, such as outsourcing. These developments had, however, been underway for quite
some time.
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