ECONOMIC SNAPSHOT


Other large downward contributions came from transport, recreation and culture, and clothing. Partially offsetting upward contributions came from increases to electricity and gas prices. The Consumer Prices Index (CPI) 12-month rate was 2.4% in September 2018, down from 2.7% in August 2018.


Retail Sales – September 2018 In the three months to September 2018, the quantity bought in retail sales increased by 1.2% when compared with the previous three months, with strong sales in “other stores” and online retailing. The increase of 3.9% for the quantity of goods bought in “other stores” for the three months to September 2018 was the largest overall contributor to the growth in total retail sales, due largely to strong growth in watches and jewelry stores.


In September 2018, the quantity bought declined by 0.8% when compared with August 2018, due mainly to a large fall of 1.5% in food stores; the largest decline in food store sales since October 2015. Online sales as a proportion of all retailing fell slightly to 17.8% in September 2018 from the 18.0% reported in August 2018, yet food stores and


clothing stores both reported record proportions of internet retail at 5.8% and 18.2% respectively.


Mortgage Approvals – September 2018 British banks approved 38,505 mortgages for new house purchase in September of 2018, fewer than a downwardly revised 39,241 in August and below market expectations of 39,000. It is the lowest reading in six months and down by 6.7% from a year earlier. Approvals of loans secured on dwellings for re-mortgaging fell to 27,874 from 30,838 in August, and the number of approvals for other purposes declined to 8,613 from 8,938. Net mortgage lending decreased by GBP 1.550 billion in September, compared with GBP 1.671 billion in August.


House Price Index – August 2018 The average UK house price was £233,000 in August 2018. This is £7,000 higher than in August 2017 and £1,000 higher than last month. On a non-seasonally adjusted basis, average house prices in the UK increased by 0.2% between July 2018 and August 2018, compared with an increase of 0.5% in average prices during the same period a year earlier


(July 2017 and August 2017). On a seasonally adjusted basis, average house prices in the UK increased by 0.3% between July 2018 and August 2018.


Labour Market – June-August 2018 Estimates from the Labour Force Survey show that, between March to May 2018 and June to August 2018, the number of people in work was little changed, the number of unemployed people decreased but the number of people aged from 16 to 64 years not working and not seeking or available to work (economically inactive) increased. There were 32.39million people in work, little changed compared with March to May 2018 but 289,000 more than for a year earlier.


The employment rate was 75.5%, lower than for March to May 2018 but higher than for a year earlier. There were 1.36million unemployed people, 47,000 fewer than for March to May 2018 and 79,000 fewer than for a year earlier.


Construction Output – August 2018 Construction output continued to recover following a relatively weak start to the year, increasing by 2.9%


in the three months to August 2018. The three-month on three-month


growth in August 2018 was driven by both repair and maintenance and all new work which increased by 2.8% and 2.9% respectively. Construction output declined by 0.7% between July and August 2018, driven by falls in both repair and maintenance and all new work which decreased by 0.6% and 0.8% respectively.


Commodity Prices – September 2018


Commodity prices were mixed in September, with energy commodities rising 5% and non- energy commodities falling 1.9%. Agriculture prices remained weak (down 2.7%), led by a 5.3% drop in grains. Precious and base metals fell around 1%.


Foreign exchange analysis – Reuters - September 25, 2018 The pound rose above $1.29 on Thursday 25th September after a show of support for British Prime Minister Theresa May from her Conservative Party dampened fears of an immediate leadership challenge over her Brexit strategy. 1 GBP = 1.13 EUR 1 GBP = 1.29 USD


www.diyweek.net


09 NOVEMBER 2018 DIY WEEK 15


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