News

Market Update

It was a week of disappointing news from the developed economies, which impact on our markets.
Growth in the UK was expected to fall from 0.6% to 0.5%, but in fact dropped to 0.3%, although it is thought that the UK is on track for 2.5% to 3% growth by the end of the year.
America, the World’s leading economy also fell back from expected growth of 1% to 0.2%, both economies are expected to rebound next quarter, except the UK does have the additional uncertainty of the election, the result of which will affect the entire economy.
Something the new Government must address early is the fact that Barratt’s, Persimmon and Taylor Wimpey, all reported a decline in construction, the lowest for over two years.
Political uncertainty is having an impact on property sales at present, but the lack of construction will have a greater impact on prices going forward.
Hopefully by next week we will know who the new Government is and we can all get on with our lives!
I suspect not.
Bill Reid BEM BA NAEA DipPFS
Reid Estates
01738237337