The recent BoE’s summary, from their Agent’s economic reports (referring to October and November) showed an unsurprising weakening in the growth of retail sales, uncertainty relating to Brexit and a subdued housing market with weighed on demand.
There was mixed demand from suppliers to the construction sector with some reporting continued growth in demand for construction materials for new warehousing, student accommodation and home improvements, but others claimed weaker housebuilding activity in some areas reduced demand for other materials. A growth in private rental sector development and civil engineering and infrastructure projects partially offset slightly weaker housebuilding activity. Commercial property remained modestly ahead of supply, which reflected the search for yield and low supply of stock in many areas, as retail properties vacancy rates continued to pick up. The most resilient demand was for distribution sheds and warehouses.
More can be found on the Bank of England website.
Article credit: Copyright SUF 2018