In light of the information provided in this article, we will get further insight into the current state of industrial output in the United Kingdom as well as the trade imbalance the country is experiencing. Additionally, Neil Mant suggests that the Common Assessment Standard be utilized for pre-qualification purposes in the building industry. In addition, we will have more information about the Tulu Kapi Project, which is Ethiopia’s first industrial mine in over 30 years. This project is slated to get underway soon. Aside from that, we will find out how the rise in the number of visits to doctors in May contributed to the acceleration of economic development in the UK.
The UK trade deficit reduced in May, while industrial production soared
The UK economy increased 0.5% monthly in May, while industrial production strengthened and the trade deficit reduced, official numbers indicated.
According to ONS, the UK’s trade deficit fell to GBP9.75 billion from GBP9.81 billion in May.
In May 2021, there was a GBP1.40 billion trade surplus.
Exports rose 4.1% month-over-month to GBP61.11 billion in May. Imports rose to GBP70.86 billion from GBP68.49 billion, or 3.5%.
Annually, exports were 9.4% higher while imports were 19% higher.
EU exports grew 2.6% and imports 5.2% in May. Exports to non-EU nations rose 13 percent in May from April, while imports rose 3.2 percent.
In May, industrial production gained 0.9% after falling 0.1% in April.
May’s increase was the strongest since November 2021 (1.0%) May’s number beat FXStreet’s expectation of no monthly rise.
Annually, industrial output grew 1.4% in May, confounding FXStreet’s prediction of a 0.5% decrease but decreasing from April’s 1.6% gain.
The ONS reported that the UK economy grew in May, defying predictions.
Following a 0.2% dip in April, UK GDP rose 0.5% in May. April’s number was reduced from a 0.3 percent fall.
Monthly GDP is now 1.7% over pre-coronavirus pandemic levels, ONS stated.
GDP grew 3.5% in the year to May, down from 3.7% in April.
The ONS noted, “Services output expanded by 0.4% [monthly] in May 2022 as human health and social work activities grew by 2.1%, principally due to a high surge in GP appointments, which offset the sustained scaling down of NHS Test & Trace and Covid-19 immunization programmes.”
But retail struggled.
“Output in consumer-facing services declined by 0.1% in May 2022, driven by a 0.5% drop in retail trade,” the ONS said. “Non-consumer-facing services expanded by 0.5% in May after falling 0.8% in April.”
Dan Boardman-Weston, CIO at BRI Wealth Management, said: “Worryingly, the consumer-facing service sector shrank by 0.1%, driven by a 0.5% drop in retail. The production and construction sectors grew by 0.9% and 1.5% respectively.
The GDP numbers are anticipated to worsen in the coming months as inflation and interest rates continue to increase, putting pressure on consumers and companies.
Paul Craig, Quilter Investors portfolio manager: “The Bank of England won’t be swayed by today’s data. It will raise interest rates to fight inflation and show it’s addressing an issue it’s been hesitant to address.
“Even if the economy is doing well, these rate hikes could cause a recession.”
Before, bureaucratic procurement was the norm
Original Source: Bureaucratic procurement has been the norm, until now …
Neil Mant recommends using the Common Assessment Standard for construction pre-qualification.
Main contractors have long seen the construction pre-qualification (PQ) process as a necessary evil and a time-consuming, repetitive, and costly exercise for the supply chain. I’ve seen this first hand throughout my years working in supply chain and material procurement, using PQQs, in-house systems, and outsourced certifications.
Sector productivity was hindered by complex, inefficient mechanisms. Historically, 180,000 specialists created over 2 million pieces of paper per year for 5,000 contractors, costing up to £1bn. When Build UK requested me to lead a cross-industry group for PQ reform, I was skeptical that it could be done. I now feel we’ll wonder how we ever lived without the Common Assessment Standard.
KEFI Gold says Tulu Kapi project to begin in fourth quarter
KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) made success in Ethiopia and Saudi Arabia in the second quarter as the local operating climate improved in both countries from late 2021.
“Work is picking up on several fronts,” the company’s executive chairman said in a second-quarter update.
We are on schedule to meet the following milestones in Q4 2022: financial closing and construction launch for Ethiopia’s Tulu Kapi gold project; and a PFS for Saudi Arabia’s Hawiah copper-gold project.
KEFI continued project launch preparations for Tulu Kapi, Ethiopia’s first industrial mine in over 30 years, and inked an umbrella finance arrangement.
The civil conflict in Ethiopia’s northern regions ended in December 2021, the national state of emergency was lifted in February 2022, and a truce was reached in March 2022, the AIM-traded business reported.
It aims to begin the full project in October 2022, once the security situation has been independently assessed and the remaining regulatory administrative duties are done.
KEFI wants to resume exploring other options in the Tulu Kapi district.
“Saudi Arabia also has exciting developments. Our Jibal Qutman gold project is accelerating its DFS, mining license, and funding activities to launch in 2023. Plus, the Saudis have given us two new gold prospecting projects.
Increased doctor visits boost the UK economy
Original Source: Surge in Visits to Doctors Drives Unexpected Jump in UK Economy
A rise in doctor visits and holiday bookings boosted UK economic growth in May, offsetting sluggish retail sales.
The Office for National Statistics said GDP grew 0.5% following a revised 0.2% decrease in April. Economists predicted 0.1% growth.
Money markets bet on the Bank of England’s rate hikes as the economy improved. Investors predict the key rate to double by year’s end to 2.75 percent.
Kitty Ussher, chief economist at the Institute of Directors, said the data was “reassuring” and won’t stop the BoE from raising interest rates this summer.
The result highlights the unclear legacy awaiting Boris Johnson’s successor this fall. That raises pressure on the government to curb skyrocketing inflation and a cost of living squeeze that’s hurting consumer spending.
Nadhim Zahawi, a contender for prime minister, said, “It’s nice to see the economy rising, but I’m not complacent.” We continue to help families and economic growth because I realize people are worried.
The UK economy performed better than expected in May, with all sectors showing growth, including services, which benefited from growing health production. A little contraction still seems expected for the second quarter, mainly because of the extra bank holiday, but the release should reassure the Bank of England that underlying growth isn’t disintegrating. Our basic assumption is a 50-basis-point August rate hike.
Bloomberg’s Ana Luis Andrade.
Business groups like the CBI and British Chambers of Commerce are concerned that economic volatility is discouraging investment. They want the government to do more to boost productivity and investment.
All sectors of the economy grew, with GP appointments and summer holiday bookings helping the services sector.
Darren Morgan, director of economic statistics at the ONS, said health was the strongest driver, despite test and trace and vaccination programs winding down.
Seven months of construction growth. The UK imported liquefied natural gas to make up for diminishing Russian supplies, which boosted industrial productivity. Manufacturing grew.
There is evidence that living standards are being squeezed.
Hospitality and retail dropped 0.1%. In May, retail sales fell 0.5% while sports, entertainment, and recreation fell 5.3%.
Inflation is at a 40-year high and salaries aren’t keeping up, threatening real incomes. The Bank of England predicts a second- and fourth-quarter recession this year and two years of stagnation.
The reduction in consumer-facing services followed rising energy expenses and taxes. Poorer households received government aid. Rich people have £200 billion in extra savings.
Now 1.7% over pre-pandemic levels. The economy won’t contract unless June GDP falls more than 0.8%.
Melissa Davies, chief economist at London-based Redburn, predicted the economy won’t decrease in the second quarter. As inflation rises, real incomes and business margins will be under pressure.
Last month, though, was a Jubilee bank holiday. In 2002 and 2012, similar incidents caused 2% monthly output drops.
Families planned summer vacations with travel agencies. Travel output rose 11% in the month after Covid restrictions were lifted.
“Road haulers had a busy month, and travel agencies did well with summer demand,” Morgan added. After several rough months, manufacturing grew. House Building and office refurbishment boosted construction.
The economy could deteriorate. Official projections show the nation will avoid two consecutive quarters of recession, but economists are pessimistic due to inflation.
A Bloomberg survey of economists estimated the likelihood of a UK recession in the next 12 months at 45%, three times higher than in 2022.
Suren Thiru, economics director for ICAEW, represents chartered accountants. Prolonged political uncertainty might stifle investment and add to inflation by causing sterling’s value to decrease.
Summary of Today’s construction news
The UK economy grew by 0.5% in May despite a decrease in industrial production and a widening trade deficit. Industrial production rose 0.9% in May after decreasing 0.1% in April. The UK trade deficit fell from 9.81 billion to 9.75 billion. May grew the most since November 2021. Inflation and interest rates are expected to rise, putting firms and families under more stress. Paul Craig of Quilter Investors thinks today’s data won’t sway the BoE. The administration plans to raise interest rates to battle inflation and demonstrate action. A rise in interest rates could trigger a recession even in a healthy economy.
Neil Mant advocates the Common Assessment Standard for bureaucratic procurement. Neil Mant says the construction pre-qualification (PQ) process has traditionally been time-consuming, repetitive, and expensive for the supply chain. His experience proves it. He said the Common Assessment Standard simplifies construction pre-qualification. He says we’ll wonder how we survived without the Common Assessment Standard.
KEFI signed an umbrella financing agreement and continued project launch preparations for Tulu Kapi, Ethiopia’s first industrial mine in 30 years. Once the security situation is independently assessed and the remaining regulatory administrative tasks are completed, the project aims to open in Ethiopia in October 2022. Saudi Arabia is making more progress. Anagnostaras-Adams said the Jibal Qutman gold project’s DFS, mining license, and financing activities will open in 2023. Saudi Arabia gave us two gold exploration projects, which we appreciate.
Increased doctor visits and vacation bookings contributed to a stronger UK economy in May, offsetting weak retail sales. GDP increased by 0.5 percent, according to the Office for National Statistics, after April’s revised 0.2 percent decline. 0.1 percent growth was forecast by economists.