Key Statistics: 3 December 2013

Construction

• There has been further broad growth in construction activity, according to this month's Glenigan Index. Overall the value of projects starting on site during the three months to November was 9% higher than a year ago, with rises in civil engineering, non-residential and residential construction.

Economy

• The Bank of England (BoE) has ‘refocused’ the Funding for Lending scheme to help support business lending. From January, banks’ allowances of cheap funding under the scheme will be determined only by the amount of lending they make to businesses; banks will no longer receive allowances for household or mortgage lending. The BoE has also removed an exemption from capital charges which means banks will now have to acquire more capital in order to make mortgages. These two changes will likely lead to a rise in mortgage rates and a slowing in the growth of mortgage approvals, however the Help to Buy scheme remains unaffected. 
• UK consumer confidence in November fell for the second consecutive month, according to GfK’s Consumer Confidence Index. The rising cost of living has been central to political and media debate, with many consumers feeling no benefits from the nascent economic recovery.
• Business investment rose by 1.4% during the third quarter of 2013 compared to the second quarter, according to the Office for National Statistics. This supports data from the British Banker’s Association which showed an upturn in lending to businesses in September. However, compared to a year ago, business lending has fallen by 6.3%.