Key Statistics: 15th January 2013

Construction

• Construction output rose 1.8% during the three months to November. However, seasonal factors contributed to the increase and on output was still 9.1% down on the same period of 2011. The decline was attributable to falls in new public sector work and private housing RM&I activity:
• Social housing and new public non-residential output were 19% and 17% down on a year ago respectively.
• Private industrial and commercial activity rose during the three months to November, but industrial output was still unchanged on a year earlier while commercial sector output 16% lower.
• Private new housing activity rose 3% during the three months to November, but was still 5% down on a year ago. Private housing RM&I activity fell 16% during the period and was 14% lower that on a year ago.
• The new infrastructure sector output rose 12% during the three months to November, limiting the decline in sector output against the corresponding period of 2011 to 2%.
• Bank of England data reveals that the number of loan approvals for house purchase totalled 54,036 in November 2012, a 3.2% increase on a year earlier. 
• The Nationwide recorded a 0.1% decline in average UK house prices in December, leaving prices 1.0% down on a year earlier. In contrast the Halifax house price index recorded a 1.3% rise in prices in December. This supported a 0.6% rise in prices during the fourth quarter of 2012, although prices remained 0.3% down on the last three months of 2011

UK Economy

• Output volumes by the production industries weakened in November according to National Statistics. Falling by 2.9% during the month and being 2.4% down on a year ago. The decline was widespread, with manufacturing output was 2.1 % down on a year ago, while mining & quarrying slumped 13% and oil & gas exploration were 17.8% lower. The water and power sectors were the only production industries to record year on year growth. 
• Official statistics recorded a continued squeeze on UK manufacturers’ profitability, with gross rates of return in the third quarter of last year averaging 6%. This compares with returns of 6.4% in the corresponding quarter of 2011. The gross profitability of the service sector rose to 16.6%. This compares with 15.7% in the corresponding quarter of 2011.
• The UK’s deficit on trade in goods and services was estimated to have been £3.5 billion in November on a seasonally adjusted basis, compared with a deficit of £3.7 billion in October. During the three months to November underlying export volumes of goods (excluding oil & erratics) was 1.4% up on a year earlier, while imports of goods only saw underlying growth of 0.3%. 
• At its January meeting the Bank of England’s Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.  The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.