Key Statistics: 22nd January 2013

Construction

• According to the Knight Frank/Markit House Price Sentiment Index homeowners believed the value of their properties continued to decline throughout January, the 31st consecutive fall in the measure. The reading of 47.6 was a slight improvement in the December reading of 47.1; however any reading below 50 indicates that current prices are still falling. 
• More positively the outlook for house prices in 2013 proved more positive; the future HPSI which tracks expectations of house prices over the next 12 months was 54.5 in January up from 53.1 in December.
• Official house price data from the ONS showed that house prices in England and Wales increased by 2.1% in the 12 months to November last year, compared to October prices were 0.5% higher in November.
• According to the Markit Household Finance Index conditions for households improved slightly in January with an index reading of 37.7, an improvement of December’s 7 month low of 36.8 but still well below the 50 mark that indicates neutral conditions.

UK Economy

According to the ONS the volume of retail sales increased by 0.3% in December compared to December 2011, over the same period the amount spent increased by 0.7%. Excluding December 2010 when a unusually harsh winter disrupted sales the 0.3% increase in sales volume is the worst on record since 1998.

• Inflation as measured by the Consumer Price Index stood at a year-on-year rate of 2.7% in December, unchanged for the third month in a row, upward pressure came from electricity and gas bills.
• Producer prices as measured by the output price index of manufactured products rose by 2.2% in December compared to December last year, between December and November prices fell by 0.1%