PROPERTY SECTOR

Leading Indicators - 3 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:

  • Eurozone GDP growth is outpacing that of the US and China. The bloc saw output increase by 2.0% in Q2 2021, the second time it has risen at a faster rate than the US and China in over a decade. In the UK, the latest consensus forecasts continue to improve and now show output growing by 7% for the full year.
  • The global skills shortage is intensifying. Unemployment fell to 7.7% across the Eurozone at mid-year, the lowest rate since May 2020, while from the US to the UK there has been an increase in hospitality and construction sector vacancies. UK construction sector PMIs released later in the week will confirm the extent of the rebound in the sector, with last month’s reading indicating the fastest pace of expansion since 1997.
  • UK commercial real estate values rise in unison. UK office capital values rose by 0.2% over the month of June, marking the first time since February 2018 that all sectors, including retail, saw capital growth. Significant disparities remain, however, with industrial values rising by a much stronger 3.2% over the month of June.

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