Weekly Market Update 15/11/2024
The UK economy grew just 0.1% in the last quarter according to data released by the Office for National Statistics. This was below economists’ expectations of 0.2%, and the previous quarter’s rise of 0.5%. The services sector, which accounts for circa 80% of the economy, expanded just 0.1% compared to 0.6% in the previous quarter. A fall in manufacturing output contributed to a 0.1% decrease in GDP for the month of September. In contrast to these figures, the economy grew 0.7% in the first quarter following the technical recession at the end of last year, but momentum has been lost since then due to low productivity and persistently high interest rates.
In another blow to renters over the last couple of years, who have already seen rents skyrocket off the back of higher landlord mortgage costs due to elevated interest rates, the decreasing supply of rental properties combined with increasing demand is expected to lead to further increases in rents according to the Royal Institute of Chartered Surveyors. The Rics data showed a sharp decrease in landlords putting properties up for rent, while demand from renters continues to increase. Annual rent growth reached a peak in March of 9.2%, which eased slightly to 8.4% in September, according to official figures.
On Wednesday, with nine Houses still yet to be called, it was declared that the Republican party have won the majority in the house of Representatives, giving the party a unified government. This is a blow to Democrats as it will make it easier for Donald Trump to push through his plans for tax cuts and other, potentially radical, agendas.
Andrea Wood, Chartered MCSI
Investment Manager
