The Halifax house price index for November was released on Friday morning and both the monthly and annual readings came in well below expectations. Month-over-month, prices grew by 0.3% from 1.5% the month before, against an expectation of 1%, while the year-on-year figures slumped to -1.4% against an expectation of 0.5%. It is the lowest annual increase in house prices since December 2012.
Sterling has a bit of a rough day against the dollar and euro, as Brexit uncertainty continues. However, one can’t help thinking that the moves have been fairly muted compared what they will be once we see the result of the meaningful vote. Of course, if the bill is narrowly defeated, then it opens it up to some tweaks and the pound’s movements would likely be slight on the upside. Anything else could see something far more dramatic, though in which direction cannot be known right now.
It’s a busy start to the week for UK economic data, with October’s balance of trade figures set for release this morning. We will also see the GDP reading for October, as well as construction output. Finally, we will see the industrial and manufacturing production readings for October which are both expected to dip from the previous reading. However, most of the attention will no doubt be taken up by Brexit, with now only one day to go until the meaningful vote.
