The Wall Street Journal-20080204-Politics - Economics- In Brief

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Politics & Economics: In Brief

Full Text (130  words)

Manufacturing Data Point to U.K. Cut

The euro zone's manufacturing sector showed resilience at the start of 2008, as activity in Germany and France offset weakness elsewhere, but the British sector slowed sharply, increasing the likelihood that the Bank of England will cut interest rates this week. The purchasing- managers index for the euro zone's sector was revised to 52.8 in January, up from December's 52.6 reading. The U.K. index fell to 50.6 in January from 52.4 in December. A figure above 50 signals expansion; a figure below 50 signals contraction.

China Holiday Still Under the Weather

Railway service slowly moved back to normal in southern China, but fog and ice-covered highways meant no breakthrough was in sight for the country's transportation nightmare ahead of the Chinese New Year holiday.