UK construction
- Construction PMI increased last month to 53.2, from 52.3 in September, and the highest level since May. Commercial building was the best-performing sector at 54.5 and Civil Engineering fell to 48.5, its fourth consecutive fall. New orders fell for the first time since May 2020.
- Output | The Construction Products Association expects construction output to fall 3.9% next year led by a 9% fall in new build housing, whilst commercial and infrastructure viability will be challenged by escalating costs.
- Commercial rent collection levels are “rising rapidly” with Remit Consulting reporting that an average of 83% of rents due were collected within seven days of the due date in the last quarter. This is the highest level seen since the pandemic.
- Investment | The latest Europe Capital Trends report by MSCI Real Assets shows that London is the most active market for sales despite completed deals in the UK falling 33% compared to last year.
- Infrastructure | Rishi Sunak has pared back plans to build a new high-speed line, “The Northern Powerhouse Rail”, which was announced by Liz Truss. The new line was expected to span Liverpool to Hull. The line had previously been cut back by Boris Johnson.
- RICS survey | A third of surveyed surveyors are expecting a downturn and activity levels have fallen (but are still positive). It also reported that access to credit is now a key challenge for businesses. The survey is UK-wide and of businesses of all sizes.
- Office Occupancy Costs are at their highest-ever levels according to Lambert Smith Hampton due to the increasing cost of energy. Costs rose 13% in the last year, or 18% for older (pre-2022) office buildings. It is the steepest annual rise in the 25-year history of the report.
- Sizewell C was reconfirmed by the government after rumours that it was being considered for cancellation in the Autumn Statement.
