Home prices in the U.K. dropped for the fourth month in a row during January as other economic activity faltered, boosting concerns about the strength of the recovery ahead of public spending cuts, according to Bloomberg. On Friday, Academetrics and LSL Property Services reported that average home prices dropped 0.1% to £221,211 in December, although prices were found 0.6% higher year-over-year. Meanwhile, the Bank of England reported falling mortgage approvals that sank to the lowest level since March 2009.
A separate report from the Office for National Statistics showed that construction output in the U.K. slowed in the fourth quarter of 2010, dropping 2.5% from the three months to September. The change was less than the 3.3% initially estimated, and brought the year-over-year change to an 8% gain. The ONS also reported separately that manufacturing output in December was weaker than expected, dropping for the first time in eight months on harsh winter weather. According to The Wall Street Journal, manufacturing output dropped 0.1% from the previous month, rising 4.4% year-over-year, but disappointing economists who had forecast for a 0.4% monthly rise and 5.5% annual gain.
Click here to read the story on home prices from Bloomberg News.
Click here for coverage of construction activity from Financial Times.
Click here to read the article on manufacturing from The Wall Street Journal.