Rics, BRC And Deloitte Boost Growth Hopes

Written By Unknown on Selasa, 09 Juli 2013 | 16.01

Optimism about Britain's recovery outlook have grown after a trio of surveys flagged rising house prices, improved business confidence and steady growth in retail sales.

The Royal Institution of Chartered Surveyors' (Rics) house price balance jumped to +21 in June from +5 in May - the best reading since January 2010 and the biggest improvement in a single month since 2009.

A survey from Deloitte also showed Britain's top firms are more willing to expand than at any point over the past two years, while the British Retail Consortium (BRC) reported healthy growth in sales last month.

The treble of promising forecasts comes ahead of an updated UK outlook announcement for 2013 and 2014 from the International Monetary Fund at 2.30pm today.

The Bank of England indicated last week it wanted monetary conditions to remain stimulative, mindful that higher bond yields could still snuff out Britain's burgeoning recovery.

But it does appear that new bank governor Mark Carney has taken the helm just as the economy is picking up.

"It is particularly encouraging to see the move towards growth among UK-facing companies," Deloitte chief economist Ian Stewart said.

"These companies have been consistently more defensive than their international-facing peers in the last two years."

The Deloitte survey showed that expectations for hiring and investment were at a two-year high, with a quarter of the chief financial officers polled saying they had shifted their focus from cutting costs to expansion.

The Rics survey showed a net balance of 45% of surveyors expect home sales to rise over the coming three months, up from 36% in May and the highest reading since the survey began more than a decade ago.

In another sign that market confidence is returning, new buyer enquiries rose for a sixth consecutive month and at a pace not seen since August 2009.

The survey chimes with data from mortgage lenders Halifax and Nationwide in suggesting the government's Funding for Lending and Help to Buy schemes are breathing new life into the market.

"After what has seemed like a very long wait we are finally starting to see what looks like the beginning of a recovery in the housing market," Rics global residential director Peter Bolton King said.

The BRC survey showed British retail sales grew in June, boosted by purchases of clothes and shoes as warmer weather tempted shoppers onto the high street.

Some two-thirds of households own their homes in Britain and rising house prices have typically gone hand-in-hand with rising consumer spending.


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