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UK demand for housing remains buoyant

British property valuers reported a surge of activity on Thursday as property investors tried to beat an increase in transaction taxes on rental investments coming into force in April. Demand for housing remains buoyant, lifted by tight supply, record employment and cheap mortgage rates, even as the global economic outlook darkens -- something which prompted the Confederation of British Industry to follow the Bank of England and downgrade its economic growth forecasts on Thursday. Read more...

UK Trade Balance deficit narrowed to £9.9 billion

The UK’s deficit on trade in goods and services was estimated to have been £2.7 billion in December 2015, a narrowing of £1.3 billion from November 2015. The narrowing is attributed to trade in goods where the deficit has narrowed from £11.5 billion in November 2015, to £9.9 billion in December 2015. Analysts were predicting deficit of £10.4 billion.

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UK Construction PMI fell more than expected

January data pointed to a renewed slowdown in output growth across the UK construction sector. At 55.0, down from 57.8 in December, the headline seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index remained well above the 50.0 no-change value, but signalled the slowest rate of expansion since April 2015. Analysts were anticipating smaller decrease to 57.6. Moreover, aside from the pre-election slowdown recorded last year, the latest reading was the lowest since June 2013. A number of survey respondents noted that softer new business growth had acted as a brake on output growth and staff hiring at the start of 2016.  Read more...

UK Manufacturing PMI rose to three-month high

The start of 2016 saw a modest improvement in the rate of growth in the UK manufacturing sector. This was highlighted by the seasonally adjusted Markit/CIPS Purchasing Manager’s Index rising to a three-month high of 52.9, up slightly from 52.1 in December. No change was expected. The PMI has remained above the neutral 50.0 mark for 34 successive months. The UK manufacturing sector registered an uptick in its rate of expansion at the start of 2016, shrugging off a number of potential headwinds, ranging from global financial market volatility to localised flooding in the North of the country.  
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