Tuesday, December 01, 2009
Manufacturing expands more slowly, house prices up
Posted by David Smith at 10:30 AM
Category: Thoughts and responses

The purchasing managers' index for manufacturing fell back from 53.4 in October to 51.8 in November, indicating that the sector is expanding (the index is above 50) but at a slower rate. Though the markets expected better, some payback was probably inevitable after October's strong rise. Export orders were strong, domestic orders much less so.

The Nationwide Building Society, meanwhile, said house prices rose by 0.5% in November and were 2.7% up on a year earlier. Given the sharp fall in December 2008, even a flat reading this December would see annual house price inflation exceed 5%. The monthly rises have clearly slowed since the summer, suggesting prices are entering a softer phase, though that is a long way from the sharp falls of a year ago. More details here.