UK economy

Citation

(2006), "UK economy", Structural Survey, Vol. 24 No. 4. https://doi.org/10.1108/ss.2006.11024dab.016

UK economy

The UK economy and consumer spending have found a firmer footing in the first half of 2006, much to the surprise of many commentators. The housing market is also stronger, while growth in the economy in Q2 is set to at least equal the firm pace registered in Q1. Price pressures are also picking up, due mainly to rising oil prices though the benefits of falling prices for imported goods are also waning. House prices have shown the strongest rise in two years, says the RICS UK housing market survey for the month of May 2006. House prices rose as demand strengthened on the back of a healthy economic environment and consumer confidence, with 20 per cent more Chartered Surveyors reporting a rise than a fall compared to 15 per cent in April. However the football World Cup has slowed consumer demand. The price of new construction work remained unchanged in 4th quarter 2005 compared with the previous quarter, according to the latest Tender Price Index compiled by BCIS. BCIS expect tender prices to rise considerably faster than inflation over each year of the forecast, principally due to pressure from above inflation increases in input costs, and above trend increases in new work output in 2007 and 2008.