Key Statistics: 8th October 2012

Glenigan's weekly roundup of key statistics for the UK construction industry and the wider economy.

Construction

• Construction industry activity, as measured by the Purchasing Managers Index showed encouraging signs in September, the PMI reading of 49.5 showed that the sector may still have contracted slightly, but less so than in August when the index read 49, any reading below 50 indicates the sector is shrinking. 

• House prices as measured by the Halifax index were down 0.4% in September compared to August and down 1.2% compared to September a year ago. The average UK house price was £159,486.

UK Economy

• The Monetary Policy Committee announced last week that interest rates will be held at 0.5% and that the size of the Asset Purchase scheme would remain at £375bn for now. The Committee expects the announced purchases to take another month to be complete and the size of the programme will be kept under review.

• The joint REC/KPMG employment survey showed that the recent strength in the labour market continues for now. Demand for staff improved, jobs vacancies increased in September at the fastest rate for thirteen months. Recruitment and Employment Confederation chief executive Kevin Green commented “The resilience of the UK labour market in the face of what official figures class as a double dip recession continues to be remarkable.  This increase in the use of temps for the second month in a row could be a sign of optimism among employers, and that they are gearing up for future growth.”

• Service sector activity, as measured by the Purchasing Managers Index continued to expand in September, the PMI reading of 52.2 was down slightly from Augusts 53.7, but showed the sector was still growing, any reading above 50 indicates expansion.