Industrial capital values soar during pandemic

Discover key economic and financial metrics, and what to look out for in the week ahead.
Written By:
William Matthews, Knight Frank
2 minutes to read

Here we look at the leading indicators in the world of economics. Download the dashboard for in-depth analysis into commodities, trade, equities and more.

Research shows that the pandemic hasn't curtailed growth in the industrial sector with capital values rising.

COP26 concludes

Headlines have been dominated by the global agreement to ‘phase down’ coal power, the reduction of fossil fuel subsidiaries and the creation of a globally regulated carbon market. For real estate specifically, the UK Green Building Council launched a Net Zero Carbon Roadmap last week, detailing the necessary actions to achieve a net zero built environment by 2050. For commercial assets, key requirements include the mandatory disclosure of embodied carbon and in-use energy.

UK government relaunches £1tn global export target

To date, UK exports have not enjoyed the same rebound as that of trade globally, but a relaunched £1tn per annum export target by 2030 seeks to address this. UK Export Finance (UKEF), will be permitted to back larger working capital loans for both foreign and domestic companies that wish to export from the UK. This could encourage FDI within the UK, while supporting global growth for domestic companies. UKEF will double the repayment period to 10 years for ‘green’ exporters, another measure to encourage the UK’s low carbon economy as well as exports.

Forecast season is here, and the outlook remains upbeat

Amidst a flurry of updates, key risks cited for 2022 include the potential for ongoing supply constraints, persistent inflation, and the risk of higher interest rates. Conversely, corporate profitability is rising to multi-year highs and we expect 2022 to be a year of heightened capex as expansion becomes a key focus. Global GDP is expected to rise by 4.9% in 2022, according to IMF forecasts. In the UK, the most recent Treasury consensus forecasts envisaged growth of 5.0%. Updated forecasts will be released in a few days.

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