The housing market is seeing record new home sales, but prices have fallen slightly. This is likely due to a lack of existing homes for sale, making new homes more attractive.
However, the manufacturing and service sectors are showing signs of weakness. This could lead to job losses and cause the Federal Reserve to slow its pace of interest rate hikes to stimulate the economy. The market reaction to this news has been mixed.
The UK economy grew slightly in February, ending a technical recession. While the GDP is still below its pre-pandemic levels, it shows signs of recovery, with construction output falling but production and services sectors growing. However, inflation remains high, and forecasts for interest rate cuts have been revised due to unexpected price increases in the US. The Bank of England is expected to cut rates four times this year, starting in June.
