UK Economic Brief - October 2002
Weak equity markets fail to dent household confidence:
- The third quarter of 2002 saw global stockmarkets post further sharp falls
- But fears over the economic outlook have not been strong enough to prompt interest rate cuts
- Strong consumer spending and house prices, indicate that the UK economy held up well in Q3
Commercial property market
- Surveyors reported a drop in occupier demand for commercial premises in the third quarter
- Commercial rents have been at a standstill since the start of the year
- By contrast, investment demand for commercial property has been very strong as investors have sought refuge from the plunging stockmarket
Construction market
- Construction workloads grew at a slower pace in the third quarter
- Growth was slightly below the long-run average, and the lowest since the first quarter of 1999
- Workloads have shown increasing strength in the public sector, but stabilised in the private sector
Residential property market
- House price inflation has remained strong in recent months
- Fears of price falls in London heightened by financial sector job losses
- Price rises outside of London have picked up on improved employment and buy-to-let activity.
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