Surprising jump in UK house prices

This was the view of Nationwide for the month of August when UK house prices rose 1.3%. Surprising jump in UK house pricesThe move was the biggest since January 2010 and means the average house price stands at £164,729.

However, we should not get too carried away with the data according to their Chief economist Robert Gardner.

“Nevertheless, the fact that the annual pace of house price decline moderated to minus 0.7% in August from minus 2.6% the previous month provides evidence that conditions remain fairly stable”.

Over to Europe and Valencia is the latest region of Spain to request a larger than expected bailout than previously thought.

Their request has increased by €4.5 billion and comes alongside the Catalan region which has also asked for access to the €18 billion Madrid public fund.

A major driver of their debt has come from failed projects such as the Castellon Airport which has cost billions yet a single flight has never taken off.

This coupled with Spain’s disappointing growth figures which shrank by 0.4% in Q2 following a contracting of 0.3% in the first leaves the country struggling to find positives in their economy.

Consumer spending dropped 2.2 percent in the second quarter compared with the same period in 2011 as median pay fell by 3.9 percent on an annual basis.

Employment, measured in terms of positions equivalent to full-time work, plunged 4.6 percent over the 12 months that ended June 30, representing the loss of more than 800,000 jobs.

These numbers are hurting the overall Eurozone’s performance and will no doubt be contributing to reports in the press that ECB Governing Council member Ewald Nowotny will cut its growth forecasts next week.

There will not be an improvement, but rather a deterioration in expectations. We have to expect negative growth rates, contraction, in practically all the southern countries in 2012, and in France roughly stagnation.

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