PROPERTY SECTOR

Leading Indicators - 17 August

Key economic and financial metrics, and what to look out for in the week ahead
Written By:
William Matthews, Knight Frank
1 minute to read
Categories: Property Sector Offices service Consultancy Topic Covid-19 Economics Forecast World Regions UK

In this edition:

  • UK gilt rates continue to fall from recent highs. At 0.57%, 10 year yields are ca. 40bps below levels two months ago, as a multitude of factors globally have spurred investor demand for safe-haven assets.
  • The UK economy is accelerating at the second fastest pace in the G7. Output expanded by 4.8% in the three months to June, while more recent unemployment and consumer sentiment figures corroborate the ongoing strength of the recovery.
  • Global shipping costs reach a decade high. The Baltic Dry index, a measure of the cost of shipping goods, has risen by over 160% since the start of the year. This reflects both rising trade as well as congestion at Chinese ports, and could further impact the supply and pricing of construction materials.

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