Key Statistics: 8th October 2013

Construction

• House prices in the three months to September were up 2.0% on the previous quarter and 6.2% higher than the same three months last year, according to the Halifax house price index. Market activity is also increasing, with mortgage approvals data from Bank of England being at their highest since February 2008. Supply is meeting the increased level of sales as more homeowners are putting their property on the market for sale. Glenigan data has shown private housing starts increase 7% in the three months to September.
• The latest Markit/CIPS Construction Purchasing Managers’ Index eased slightly to 58.9 in September from 59.1 the month before. A figure above 50 indicates expansion and, taken with the survey finding from the previous two months, the survey results point to a sharp expansion in construction output during the third quarter. All three broad areas of the construction sector posted higher levels of business activity in September. Residential construction was the strongest performing of these sub-sectors, with the latest rise in output the fastest since November 2003.
• Research by the Construction Products Association indicated strengthening sales of construction products through 2013 Q3, driven especially by private housing and infrastructure. However the survey also noted widespread cost inflation as a result of rising energy and transport costs.

Economy

• Car registrations in September 2013 hit their highest level since March 2008, according to SMMT data. Private registrations, a useful lead indicator for home repair and maintenance work, are up 17.9% on last September. Fleet and Business registrations continued steady growth reflecting improving business confidence.
• The CIPS UK Services PMI and Manufacturing PMI surveys fell slightly from peaks in August, reporting strong continuing growth in Business activity in September. Both sectors saw employment growth as a response to increasing backlogs of work.
• Housing Equity Withdrawal fell by a record £15.37bn in 2013 Q2 as homeowners continue to take advantage of low interest rates to pay back debt.