We thought a bit of good news would kick the weekend off nicely. DevDosh Ltd HQ are pleased to present the following facts to make you smile
UK house prices increased 4.1% year on year in January 2020. That is higher that the 4% uplift shown for December year on year and more than a point up on the expected 3% increase. On a monthly basis house prices increased by 40 basis points from December. This a healthy and sustainable growth rate although dwarfed by the election fueled 1.8% bounce of December. The average house price UK wide is £240,000 and change and the market is expecting moderate growth over the coming year. Property stock levels are below demand and residential construction is not satisfying sufficient quota levels to put the power into buyers hands. Of course DevDosh Ltd will be doing our best to boost house building this year. With base rates low mortgages will remain affordable for the foreseeable future which is a positive for buyers. However the challenges being faced by residential landlords are pushing up rental prices and is making it harder for 1st time buyers to get their foot on the first rung the property ladder.
Composite Purchasing Manager Index (PMI)
The PMI showed a strong monthly gain in January 2020. The composite PMI was 53.3 a full 4 points up from the the previous month. The service sector returned to growth with a PMI figure of 53.9 v 50.00 in December 2019, and manufacturing showed up and stabalised at 50.0 points v 47.5 the previous month.
These are the strongest numbers the service sector has seen since 2018. It’s a strong indication that with the uncertainty the general election and Brexit in the rear view mirror purse strings are being loosened.
CBI’s Optimism Gauge
UK manufacturers are the most optimistic they have been for six years. The CBI’s quarterly gauge of manufacturing optimism hit +23 for the first quarter of 2020. We have not seen that number since the pre Brexit period. It is in fact the most optimistic British manufacturing has been since the 2nd quarter of 2014. A record number of UK companies are expecting to rubber stamp capital expenditure to enable expansion to meet future demands this year.
We are pleased to bring you these forward indicator highlights but bear in mind it’s early days in the Brexit cycle. It’s not time to sell the farm and invest in cyclicals and currency plays just yet.
It is great to see however that we are starting 2020 on a note of solid positivity and that the country is getting behind it’s race for success. For more of our thoughts and interesting insights like the information above visit us at DevDosh Ltd and read our blogs of follow the links to any of our social media.