Key Statistics: 6th November 2012

Construction

• Construction activity as measured by the Markit/CIPS PMI survey rose slightly in October the reading of 50.9 indicates that the industry grew slightly last month in contrast to the slight contraction shown in September’s data; any reading above 50 indicates expansion in the sector.
• House prices as measured by the Nationwide building society rose by 0.6% in October compared to September, commenting, “The annual pace of change continues to display a picture of relative stability, with house prices down just 0.9% compared to October 2011.”

UK Economy

• Consumer confidence as measured by the GFK/NOP survey hit a six month low with a reading of -30, down two points from last month’s reading of -28. Commenting, "The fragility of the recovery is underlined by the fact that people are more worried about their own financial situation over the next 12 months. This certainly doesn’t suggest there will be a spending boom on the back of the official emergence from recession.”
• Service sector activity as measured by the Markit/CIPS PMI survey continued to grow in October; however the rate of increase was the slowest that has been recorded in 22 months of service sector expansion.  The reading of 50.6, which indicates very marginal growth in the sector, is counter intuitive to recent GDP data that showed the economy returned to growth in the third quarter, much in thanks to a strong contribution from the services sector.