Sales of luxury homes drop 28.1%

EditorialRoom 16th October 2022

Sales of luxury homes drop 28.1%

Luxury U.S. homes purchases fell 28.1% year over year during the three months ending Aug. 31, 2022, according to a new report from Redfin, as rising interest rates, inflation, a tepid stock market and economic uncertainty are causing luxury buyers to back off. That’s the biggest decline since at least 2012, eclipsing the 23.2% plunge that occurred when the onset of the Covid-19 brought the housing market to a near standstill roughly two years ago, the real estate brokerage revealed. “High-end-house hunters are getting sticker shock when they see the impact of rising mortgage rates on paper. For a luxury buyer, a higher interest rate can equate to a monthly housing bill that’s thousands of dollars more expensive,” Fairweather said. “Someone who was in the market for a $1.5 million home last year may now have a maximum budget of $800,000 thanks to higher mortgage rates. Luxury goods are often

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Eurozone sees fall in construction output

EditorialRoom 18th February 2022

Eurozone sees fall in construction output

Production in the construction sector in the eurozone dropped 4% in December 2021 compared to November, according to first estimates from Eurostat. In the whole of the European Union (EU), construction output was off 3.1% on a monthly basis, the statistical office of the bloc said on Friday (Feb. 18). Compared to December 2020, production in construction decreased by 3.9% in the Eurozone and by 1.8% in the EU. The annual average production in construction for the year 2021, compared with 2020, was up by 5.2% in the euro area and by 4.8% in the EU. Monthly comparison by construction sector and by Member State In the eurozone in December 2021, compared with November 2021, building construction decreased by 4.5% and civil engineering by 1.9%. In the EU, building construction decreased by 3.6% and civil engineering by 1.3%. Among Member States for which data are available, the largest monthly decreases

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South Korea Business Sentiment Index drops

EditorialRoom 27th January 2022

South Korea Business Sentiment Index drops

South Korea’s Business Survey Index (BSI) on manufacturing business conditions was 90 in January, down 5 points from the previous month,  the Bank of Korea said on Thursday (Jan. 27). The outlook for the following month also fell by 2 points to 90. A reading below 100 means pessimists outnumber optimists. The fall is attributed to the prospect for sluggish demand in the electronic, video, communication equipment and metal processing sectors. The Business Survey Index (BSI) is compiled to grasp the business conditions for the current month and their outlook for the month following, by conducting surveys on entrepreneurs’ perceptions of them. A total of 15 items, including business conditions, sales and profitability, are surveyed at 3,255 corporations. In the non-manufacturing sector, the BSI on business conditions for January 2022 was 83, up 1 point from the previous month, and the outlook for the following month also rose by 4

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Labour market recovery slow and uncertain

EditorialRoom 18th January 2022

Labour market recovery slow and uncertain

Global unemployment is expected to remain above pre-COVID-19 levels until at least 2023, according to the ILO World Employment and Social Outlook – Trends 2022. The 2022 level is estimated at 207 million, compared to 186 million in 2019. The WESO Trends report warns of the stark differences in the impact the crisis is having across groups of workers and countries. These differences are deepening inequalities within and among countries and weakening the economic, financial and social fabric of almost every nation, regardless of development status. This damage is likely to require years to repair, with potential long-term consequences for labour force participation, household incomes and social and – possibly – political cohesion. The effects are being felt in labour markets in all regions of the world, although a great divergence in recovery patterns can be observed. The European and the North American regions are showing the most encouraging signs

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Hungary’s automotive production drops 15.1%

EditorialRoom 13th January 2022

Hungary’s automotive production drops 15.1%

Hungary’s output of automotive manufacturing, representing 23% of the country’s manufacturing output (having the largest weight) fell by 15.1% year-on-year in November 2021, a second estimate of the Central Statistics Office (KSH) showed. The decline was mainly caused by the fact that, due to the global semiconductor shortage, factories were working at lower capacity or on a one shift basis. The volume of motor vehicles manufacturing dropped by 11.5% while the manufacture of parts and accessories for motor vehicles decreased by 21%. The KSH confirmed the volume of industrial production grew by 2.6% year-on-year in November 2021. Based on working-day adjusted data production rose by 2.1%. According to seasonally and working-day adjusted data industrial output was 2.9% higher than in October 2021. The detailed data also showed the manufacture of computer, electronic and optical products accounting for almost 12% of manufacturing declined too, by 2.1%, due to the microchip shortage. On the

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Housing market: What 2022 has in store?

EditorialRoom 30th December 2021

Housing market: What 2022 has in store?

It’s been a year of running out of adjectives to describe the housing market during the COVID-19. What will the 2022 real estate market look like? U.K. After a stellar 2021, UK’s housing market may slow next year, according to the Nationwide Building Society. The house price index (HPI) increased by 10.4% year-on-year in December after a 10.0% increase in November. On a monthly basis, the HPI rose 1.0% following a 0.9% gain in November. Economists had forecast a 0.5% increase. “2021 was the strongest calendar year for house price growth since 2006,” the group said on Thursday (Dec. 30). The average price of a typical UK home hit a record high of GBP 254,822, up by GBP 24,000 over the year, which was the largest rise in a single year in cash terms. Prices were 16 percent higher than before the Covid-19 pandemic struck in early 2020. Prices got

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CEO confidence retreated in Q4 2021

EditorialRoom 21st December 2021

CEO confidence retreated in Q4 2021

CEOs’ confidence slipped further in the fourth quarter of 2021, according to the Conference Board Measure of CEO Confidence™ in collaboration with The Business Council The measure now stands at 65, down moderately from 67 in Q3 2021—and substantially from Q2’s all-time high of 82. (A reading above 50 points reflects more positive than negative responses.) The survey was fielded from November 3rd through November 19th. CEOs’ assessment of current economic conditions softened further while CEOs’ view of conditions in their own industries also weakened, with 58 percent reporting better conditions compared to six months ago, down from 64 percent in Q3. Looking ahead, expectations declined moderately in Q4 compared to Q3: 61 percent of CEOs expect economic conditions to improve over the next six months, up from 60 percent. Similarly, 61 percent of CEOs anticipate short-term prospects in their own industries to improve, down from 65 percent. “CEO confidence slipped further in Q4, as business leaders continued to wrestle with the

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Swissbau 18-21 January 2022

EditorialRoom 10th December 2021

Swissbau 18-21 January 2022

Swissbau, one of Europe’s leading trade fairs for the construction and real estate industry, brings together Switzerland’s combined decision-making competence – all concentrated at a single point. Every two years, Swissbau provides a source of inspiration, a discussion platform and an innovation radar for the entire Swiss planning, construction and real-estate industry. Swissbau comprises the three elements of a multi-industry trade fair (exhibitors with their products, services and content/stories), Swissbau Focus (event and networking platform) and the Swissbau Innovation Lab (digital transformation platform). These formats are subject to constant further development over the full lifecycle of a building in cooperation with leading partners and exhibitors. Swissbau 2020 at a glance: Exhibition space: 110,000 m2 Visitors: 92,269 / 84% professional visitors, 16% private visitors Professional visitors: 47% Architects, interior designers, engineers, specialist planners, building site managers, BIM managers, general contractors, 24% Tradespeople (construction/finishing trades), 12% Dealers, manufacturers, 7% Education, 5% Facility

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Record growth for US service sector

EditorialRoom 8th December 2021

Record growth for US service sector

The Institute for Supply Management, a trade group of purchasing managers, released a report showing the U.S. service sector growth unexpectedly accelerated in November. The ISM said its services PMI jumped to a record high 69.1 last month from 66.7 in October, easily beating market expectations of 65, with a reading above 50 indicating growth in the sector. It was the fastest pace of expansion in the services sector since the series began in 1997. The services sector accounts for more than two-thirds of U.S. economic activity. “In November, record growth continued for the services sector, which has expanded for all but two of the last 142 months,”  Anthony Nieves, Chair of the ISM Services Business Survey Committee said. “Demand continues to outpace supply that has been impacted by capacity constraints, shortages of labor and materials, and logistical challenges,” he added. “This has also caused demand-pull inflation that is affecting

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Australia home loans drop 4.1% in October

EditorialRoom 7th December 2021

Australia home loans drop 4.1% in October

The value of owner-occupied home loans in Australia stood at A$19.84 billion in October, down 4.1 percent compared to the previous month, according to statistics released by the Australian Bureau of Statistics (ABS). That missed forecasts for an increase of 1.0 percent following the 2.7 percent decline in September. New investor loan commitments was up 1.1 per cent to near record levels in October after gaining 1.4 percent in September. “The value of new loan commitments for investor housing has grown for 12 consecutive months, reaching $9.7b in October 2021. This was the highest level since the all-time high in April 2015” ABS head of Finance and Wealth, Katherine Keenan, said. “While the value of investor loan commitments has grown 90 per cent over the past year, the number of investor loans only accounted for 33 per cent of all new loan commitments for housing in October” she added. Overall

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