The Q3 2010 results are disappointing and signal a marked slowdown in the pace of growth. Many manufacturing balances, and all the key
service sector balances, weakened in Q3. The Q3 performance was worse for services than for manufacturing, and it is worrying that some of the key service balances dropped into negative territory.

But there were positive features, mostly in manufacturing. Although the domestic and export national manufacturing balances fell in Q3, they remain relatively resilient and are firmly in positive territory. There were welcome Q3 improvements in the manufacturing balances for investment, employment and turnover confidence. But the dismal service sector performance is disturbing, notably the fall in confidence balances. National cashflow positions are weak for both sectors, with service firms dropping deeper into negative territory.