PRESS DIGEST - Financial Times - NOV 12

BANK LIFTS FORECASTS FOR UK GROWTH

Bank of England governor Mervyn King has stated that Britain is "facing a prolonged period of balance sheet adjustment" as spending continues to be reined in, signalling a trend that will limit inflationary pressures. The decision has been made by the Bank to sharply upgrade its forecasts for growth for the next two years but it has stated it still expects any recovery in the British economy to be slow and unstable mainly due to how deeply output has fallen since the beginning of last year.

LABOUR MARKET FLEXIBILITY HELPS TO RESTRICT CUTS

Recently released data suggests the UK's labour market has so far functioned relatively well when compared to international standards. Current UK unemployment has risen by 7.8 per cent since 2007, whereas US unemployment more than doubled to 10.2 and Ireland's trebled to 13 per cent. John Philpot, chief economist at the Chartered Institute of Personnel and Development, said of the "British-style flexible market" that it "enables employers and workers voluntarily to adjust pay and hours of work, thereby limiting job cuts."

BUILDING OF CITY OFFICES SET TO HIT 30-YEAR LOW

The amount of commercial properties being constructed in London has dramatically fallen, according to a recent survey. The cranes survey, commissioned by property consultants Drivers Jonas, revealed that the construction of office skyscrapers and West End buildings is being put on hold as a consequence of the recent economic crisis. Developments are at their lowest level in 30 years. Anthony Duggan, partner at Drivers Jonas, said: "There are just five buildings scheduled for completion post-2010." The consultancy's survey predicts that there will be a dramatic recovery for prime rents across London as the best locations are snapped up due to the inactivity.