Key Statistics: 08 September 2015

Construction

• The September Glenigan Index shows that private sector construction starts have returned to growth, though the impact of election delays still hangs over the public sectors and starts overall. The underlying value of construction starts was 8% lower during the three months to August than a year earlier, but this rate has improved from a 20% decline in July. The month of August alone saw starts up strongly from a year ago.
• The Markit/CIPS Construction PMI showed construction activity growth picking in August, as a result of the fastest growth in commercial work for five months. Job creation remained at a ‘robust rate’, and the use and charges of sub-contractors rose sharply during the month.
• Investment into key construction related assets fell during the second quarter of 2015, but remained ahead of the levels of a year earlier. Investment into dwellings was down 3.9% on 2015 Q1 but up 2.1% compared to 2014 Q2. Investment into other buildings and structures (plus transfer costs) fell by 4.1% from the previous quarter but was 0.9% higher than a year earlier.

Economy

• The Markit/CIPS Services PMI recorded its lowest for more than two years in August, pointing to a slowing in the UK’s services sector, which dominates the economy and is the lead driver of GDP growth. However the reading of 55.6 remains above both the long-run average of 55.2 and the 50.0 no-change mark.
• UK Mortgage approvals rose strongly in July to the highest monthly total since February last year. 68,764 mortgages were approved, up from 67,069 in June.
• Business investment rose sharply during the second quarter of this year, according to provisional figures from the ONS. Business investment was up 2.9% on the previous quarter and by 5.0% compared to a year earlier.
• The second estimate of GDP was of a 0.7% rise in the second quarter, unchanged from the preliminary estimate by the ONS.