UK’s Rightmove, BDO flash mixed signals for British economy, GBP/USD grinds higher
|The latest survey reports from Britain’s property website Rightmove and the UK BDO unveil mixed signals. That said, the former cites a jump in the house asking price to mention the returning confidence to the housing market while the latter states UK firms’ plan to differ investments on tax increase.
Key findings from Rightmove
Asking prices for British homes rose in May by more than in any other month this year as a better economic outlook and steadier mortgage rates offset the impact of the Bank of England's interest rates rises.
The average price of homes coming to the market jumped by 1.8%, or 6,647 pounds ($8,389.18) from April, above the average rise for May of 1.0%.
Rightmove said mortgage rates had been stable on a week-to-week basis.
Other indicators have painted a more mixed picture.
Important details of BDO Survey
Almost half of medium-sized British companies plan to delay investment plans due to last month's rise in corporation tax.
Low business investment is one of the reasons economists give for the weak growth in British productivity and living standards over the last decade, and businesses have complained that higher tax rates reduce their incentive to invest.
Accountants BDO said 46% of businesses surveyed with a turnover of between 10 million and 300 million pounds ($12 million - $379 million) reported that the rise in corporation tax would delay investment, while 39% said it would slow hiring or lead to job losses.
The BDO survey was based on responses from 512 companies polled between March 30 and April 16.
Also read: GBP/USD Price Analysis: Climbs firmly above 1.2450 ahead of Monday’s US borrowing cap talks
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