Blackfinch Spring VCT PLC has provided a weekly market update, summarizing global events. In the UK, house prices have fallen 5.3% from their peak in August 2022, marking the strongest contraction since 2009. The average UK home now costs approximately £259,000, which is £14,600 cheaper than last year. The UK economy has recovered to pre-pandemic levels in Q4 2021, earlier than previously thought, according to the Office for National Statistics. The manufacturing sector in the UK has experienced its slowest activity since the pandemic lockdowns, with the purchasing managers' index falling to 43 points in August. UK car production has risen 31.6% in July compared to last year, but remains 29% below pre-pandemic levels.
In North America, the US rate of unemployment unexpectedly rose to 3.8% in August, with the economy adding 187,000 jobs. The US economy grew at a slower pace than previously thought between April and June, with annualized GDP growth revised down to 2.1% for Q2. Eurozone inflation remained at 5.3% in August, higher than economists' forecast of a slight fall to 5.1%. Germany's economy continues to suffer from weak trade, with exports dropping by 0.9% in July. The Eurozone manufacturing sector remained in deep contraction territory in August, with Germany experiencing the most pain.
This market update provides a snapshot of the current economic conditions in various regions, highlighting key indicators such as house prices, GDP growth, unemployment rates, and manufacturing activity. It offers valuable information for investors and financial professionals to stay informed about the global economic landscape.