Key Statistics: 16th October 2012

Construction

• Official statistics reported that construction output in August fell by 0.9% from July, down 12% from August last year. The data point to an industry that has essentially been flat over the third quarter, while far from good news it is likely that the construction industry did not drag on the economy in the third quarter as it has in the preceding quarters.  
• The Council of Mortgage Lenders reports that gross mortgage lending in August was down slightly from £12.7bn in July to £12.6bn in August.
• RICS survey of the housing market for September showed that transaction levels are expected to rise towards the end of the year and price falls are expected to slow. Peter Bolton King, Director of Residential at RICS commented, “The housing market was relatively flat during September but surveyors are optimistic that the run in to Christmas could see an increase in activity in many areas of the country. Prices are still dipping but at a much lower rate than seen in previous months.”

UK Economy

• The National Institute of Economic and Social Research announced they believe the UK recession has ended and that the economy grew by 0.8% between the second and third quarters, the relatively strong resurgence in activity mainly a result of the Olympic Games. Official growth estimates, released at the end of the month are expected to confirm that the UK is no longer in recession.
• The ONS reported that the number of foreign visitors to the UK in August was actually 5% lower than the number in August 2011, it was previously expected that visitor numbers would have increased due to the Olympic Games. Despite the fall in visitor numbers UK earnings, which includes ticket sales for the Games, were up 9% over the same period.
• The UK’s trade deficit widened in August to £4.2bn from £1.7bn in July, the deficit of goods widened to £9.8bn from £7.3bn in July UK exports fell and imports rose.