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WHAT DO THESE FIGURES TELL US ABOUT THE RECOVERY?

<strong>JONATHAN LOYNES </strong>CAPITAL ECONOMICS<br />&ldquo;The rise in the new orders index was driven entirely by domestic orders. The export orders index actually slipped back a touch from 51.5 to 50.9, suggesting that UK firms have yet to feel much benefit from the weaker pound and the global recovery. &ldquo;<br /><br /><strong>RICHARD MCGUIRE </strong>RBC CAPITAL MARKETS<br />&ldquo;The survey&rsquo;s sub-indices underscored the buoyancy of the headline, most notably the new orders measure which hit its highest level since January 2004. With the stock of previous orders backing up, this surge in demand points to the recovery maintaining traction going forward.&rdquo;<br /><br /><strong>MICHAEL SAUNDERS </strong>CITI<br />&ldquo;The PMI data tends to support our view that it would be wrong to extrapolate the surprise 0.4 per cent drop in third quarter GDP into a forecast of further weakness in the fourth quarter and the first three months of next year.&rdquo;