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Slow development in Car Insurance industry

Thu, 06 Oct 2005

The last nine months have seen a slowdown in the growth of the UK Car Insurance industry.

A general decline has been reported in the service industry over the past nine months, according to an index of purchasing managers compiled by NTC Research. Some industry experts are predicting that a recent slowdown in consumer spending could be spreading from a drop in retail sales to service purchases.

"Although service sector activity is still seeing reasonably healthy expansion, the survey nevertheless reinforces our belief that growth is likely to remain below-trend for some time to come and that another 25 basis-point interest-rate cut could be enacted before the end of the year,' said Howard Archer, an economist at London-based analysis firm, Global Insight, reports Bloomberg.

However, UK services are still growing and have experienced some rate of increase for the past 30 months, suggesting that any recession in the insurance sector is unlikely.


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