FIRST ANNUAL DECLINE IN HOUSE PRICES IN EIGHT YEARS

House prices showed the first year-on-year decline in eight years in June, according to data from Nationwide (Financial Times, p3, £). The index showed a 0.1 per cent annual fall in prices last month, the first decline since December 2012. Month-on-month prices were down 1.4 per cent in June, following a 1.7 per cent decline in May. The monthly fall is equivalent to a cut of £2,499 on the average price Daily Telegraph, B3, £).

While there had been reports the property market rebounding since it reopened on 13 May, economists have warned that this may be short-lived due to rising unemployment and a lack of wage growth (The Times, p2, £).

UK WILL NEED TO SUPPORT MORE UNEMPLOYED

The UK should temporarily increase unemployment benefits as the furlough scheme comes to an end in order to support those who become redundant, the International Monetary Fund's chief economist has suggested (The Times, p36, £; Reuters). Speaking at a Treasury select committee, Gita Gopinath said that the government faces the challenge of reallocating resources in the labour market, with those worst impacted by the crisis being ?low-skilled, low income workers, and?women and minorities in large numbers?. Ms Gopinath also said that the economic recovery may be 'somewhat prolonged?, with ?many countries below their pre-crisis levels even at the end of 2021? (Daily Express, p6).

The comments came as a wave of job cuts in the retail sector were announced, with 6,000 positions lost yesterday (The Guardian, p1). According to the Financial Times (p1, £), big companies have announced a total of more than 100,000 redundancies during the Covid-19 pandemic.

NEWS IN BRIEF

The manufacturing sector is showing signs of recovery as the latest HIS Markit/CIPS flash composite purchasing managers? index is above 50, signifying growth, for the first time since February (The Times, p36, £).

The government should establish a green infrastructure bank as part of the efforts to revive the economy following the impact of the coronavirus, business groups, economist and local leaders have said (Financial Times, p2, £).

A new pro-competition regulatory regime is needed to govern the behaviour of major platforms funded by digital advertising, the Competition and Markets Authority said yesterday, suggesting a new ?Digital Markets Unit? should be established to enforce a new code of conduct (BBC News).

A group of 100 company leaders, entrepreneurs and business groups have written to Boris Johnson warning that it would be ?hugely damaging? to the economy if a trade deal is not agreed with the EU by the end of the year (Financial Times, p2, £).

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