Key Statistics: 5 Aug 2014

Last Updated:

1st August 2014

Mace Cost Consultancy have increased their forecasts of tender price inflation in London to 4.5% in both 2014 and 2015, from 3.5% and 4% previously forecast, with inflation then forecast to dip slightly to 4% in 2016. Their Q3 UK tender cost update noted that contractors are now being much more selective about tendering opportunities in the capital, particularly with regards to risk. Forecasts for the rest of the UK remained unchanged at 2% this year, 2.5% next year and 3% in 2016.

There were 36,858 new home registrations in the UK in the second quarter of this year, according to the National House Building Council (NHBC). This was a 3% increase compared to a year earlier; however underlying these figures was a distinct divergence between the private and public sectors. Private registrations were up 9% whereas public sector registrations fell by 11%.

Economy

British Manufacturing in July grew at its slowest pace since the same month last year, according to the Markit/CIPS Manufacturing PMI. The index fell to 55.4 from 57.2 the previous month. Despite signalling an easing of growth, the reading is well above the 50.0 no change mark and represents further healthy expansion ahead.

UK mortgage approvals rose in June for the first time in five months, according to Bank of England data. Having peaked in January the number of mortgages approved had been in decline following the introduction of new lending standards by the Bank of England.

The latest house price data showed an easing off of prices in July, with Nationwide reporting a 0.1% rise between July and June, the lowest increase since April 2013. While monthly figures can be volatile, the longer term trend also slipped back; 2.3% growth on the previous three months was the slowest increase since August 2013 and the annual rate of price growth fell from 11.8% in June to 10.6% in July.

British consumer confidence dipped for the first time in six months in July according to GfK’s consumer confidence index. However the reading remained close to June’s ten year high.