16 • INDUSTRYNEWS
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MANUFACTURING OUTPUT
CONTINUES EXPANDING
»»MANUFACTURING OUTPUT
continues to expand at a solid rate,
according to the latest Confederation of
British Industry (CBI) monthly Industrial
Trends Survey.
The survey of 481 firms found that
manufacturers are expecting the rate of
production to accelerate rapidly, with
11 of the 18 sub-sectors upgrading their
expectations for output over the next three
months.
Meanwhile, export order books
weakened slightly, but remained
comfortably above their long-run average.
Chemical firms experienced the sharpest
drop in overseas demand, contrasting with
the motor vehicle and transport sector,
which reported the greatest improvement.
Total orders remained unchanged from
the previous month, well above average
levels.
Companies’ near-term expectations
for prices eased, with a majority of
respondents anticipating no change over
the next three months.
Stock adequacy climbed to the highest
level since June 2013, with half of the
change in the balance accounted for by
chemical manufacturers, who also scaled
back their output the most out of the
survey respondents.
Rain Newton-Smith, CBI Chief
Economist, said: “It’s good to see that
manufacturers are enjoying a lingering
summer with output running at a strong
pace and manufacturers’ order books
remaining solid, particularly amongst the
food, drink and motor vehicles sectors.
“Our members tell us and our surveys
show that the fall in sterling has boosted
international competitiveness for
many businesses, with export order
books remaining well above average in
September, despite weakening slightly.
“But there are plenty of challenges
ahead for manufacturers as we adjust to
a new relationship with the EU and the
rest of the world. That’s why we want to
see a focus on promoting investment and
innovation in the Autumn Statement to
ensure our makers are able to put their
best foot forward and adjust to new
opportunities.”
DOMESTIC PROPERTY SEES MASSIVE
FALLS IN TRANSACTIONS AND PRICES
»»ACCORDING TO Q2 2016
data released from HM Land
Registry, residential markets
across the UK were already
suffering, pre-Brexit. The only
exception was Prime Central
London’s (PCL’s) mainstream
private rented sector, where
quarterly price growth was
robust (+6.6%) despite recent
tax changes and global
economic uncertainty.
Demonstrating the
distorting effect of recent
changes in tax legislation,
sales volumes fell
dramatically everywhere
in Q2 following a rush of
activity during the previous
quarter, as buyers sought to
be beat April’s 3% Additional
Rate Stamp Duty (ARSD)
deadline.
The UK’s domestic markets
witnessed dramatic falls in
prices and transactions in Q2,
despite record low mortgage
rates and Government efforts
to decrease basic rate Stamp
Duty. In Greater London as a
whole, average prices fell 7%
over Q1 to £558,082 with a
corresponding 44.5% decrease
in sales.
Across the rest of the
country, average prices fell
4.5% over Q1 to £268,713 with
only 155,895 sales taking place,
a 30% decrease over Q1 and
the lowest quarterly number of
sales on land registry record.
This is down from a pre-credit
crunch average of 245,173.
Naomi Heaton, CEO of
London Central Portfolio
(LCP), who analysed the data,
comments: “Whilst we have
seen falls in mortgage rates
and reductions in basic rate
stamp duty for the majority of
the market, the surge in prices
experienced over the last few
years in Greater London has
stuttered. The market has
LOCKSMITHJOURNAL.CO.UK | NOV/DEC 2016
suffered this year in the face of
the new additional 3% Stamp
Duty and a brewing new build
market crisis which has seen
a 43% fall in sales compared
with last year.
“Likewise, registering the
lowest number of sales since
Land Registry records began
in 1996, the fall in sales i n
England and Wales is very
concerning, particularly
given additional Government
schemes to augment first time
buyer numbers. With harsher
salary caps on mortgage
lending impeding buyers and
Brexit uncertainty affecting
sentiment, growth in both
these domestic markets is
expected to slow further across
the rest of the year as buyers
battle with the new normal.”