Economic commentary

• The strength of the dollar has been a major feature of the international economy in recent months.
  
  
• Inflation seems to have stopped rising in the major industrial countries. Nevertheless it still seems too early to say with confidence that it is established on a downward path.
  
  
• Activity remains strong except in the United States, where there have been signs of a slowing.
  
  
• Output in the United Kingdom was little changed in the second quarter while domestic demand Jell. Consumer spending remains subdued as a consequence of the successive increases in interest rates.
  
  
• Wage costs remain a cause Jor concern and the increase in interest rates in the United Kingdom in October demonstrated the authorities' determination not to allow thefirmness of the monetary stance to be undermined by Jurther exchange rate depreciation.
  
  
• The current account deficit widened in the third quarter, despite the slowdown in demand.

Economic commentary