Leading Indicators | Rising Optimism?
10 December 2024
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Here we look at the leading indicators in the world of economics.
for in-depth analysis into commodities, trade, equities and more with a focus on Europe.
UK Retail Warehouse poised to lead
In the latest IPF Consensus Survey, the All-Property total return forecast for 2024 has weakened marginally by -10bps to +5.6%. However, total return projections for 2025 have improved by +20bps to +8.6%. Between 2024-2028, Retail Warehouse is expected to be the best-performing sector with a total return of +9.4% per annum
Foreign investment in UK rises in Q3 2024
In Q3 2024, the value of inward M&A (foreign companies acquiring UK firms) rose to £7.8 billion, up £1.1bn from the previous quarter (£6.7bn) and a £3.0bn rise year-on-year. This rise signals growing investor confidence in the UK, which may benefit UK CRE through increased capital flows and stronger asset demand.
End of year insights: key concerns for UK businesses
The latest ONS BIC survey found that 61% of UK businesses reported some form of concern in December 2024. Falling demands of good and services were the primary reported business concern at 16.4%, followed by taxation concerns (14.3%) - which rose 4% from the previous month. Property rental costs remained the least reported concern, at 1.3%.
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