British “Readrow Bars” records a 12% decline in house construction amid a slowdown in bookings

The British company, Barratt Redrow, which specializes in home construction, announced on Wednesday that the number of residential units it completed had decreased by 12 percent, indicating a slowdown in reservations by individual buyers during the seventeen weeks ending on October 25, in light of the continued rise in mortgage costs and interest rates, which is putting pressure on demand.

High interest rates have exacerbated the slowdown in the British housing sector, after weakening demand from buyers, at a time when pressure is increasing on home builders, as a result of rising energy and construction costs due to the war in Iran, according to Reuters.

The British government's "Your First Home" program, which was announced in September, initially raised hopes of a recovery in demand in the market, but the details revealed in last month's budget disappointed investors, due to the delayed start of its implementation, limited funding, and fees imposed on real estate development companies.

The company said in a statement: “We welcome the launch of the (Your First Home) program to support the provision of housing in the long term, but it is too early to assess its impact on the activity of buyers for the first time during the fiscal year 2027.”

The total number of homes completed by the company, including joint projects, reached 3,223 units. The average core weekly bookings for homes from individual buyers, excluding joint ventures, an indicator of near-term demand, also fell to 0.53 from 0.57 a year ago.

A prominent Thai business group expected the country's economy to grow at a rate of between 2.4 and 2.6 percent this year, compared to its previous forecast of 2.1 to 2.5 percent, supported by improved performance of the manufacturing sector and an increase in exports.

The Permanent Joint Committee on Trade, Industry and Banking said on Wednesday that Thai exports, which are a major driver of economic growth, are expected to rise by between 18 and 22 percent, compared to its previous estimates that indicated an increase of between 12 and 16 percent, according to Reuters.

The committee explained, in a statement, that amending the methodology for calculating the industrial production index in Thailand showed factory production growing by 2.6 percent on an annual basis, during the first nine months of 2026, instead of the contraction that the data showed according to the previous methodology.

The second largest economy in Southeast Asia recorded growth of 2.4 percent over the past year, lagging behind other economies in the region.

In a related context, the group supported raising the consumption tax imposed on imported electric cars to 35 percent, with the aim of encouraging local production.

President of the Federation of Thai Industries, Pimjay Lysarankul, said during a media briefing that this step is expected to contribute to increasing domestic automobile production by 7 percent, reaching 1.55 million units in 2027.

The group added that the automobile and spare parts industry sector in Thailand represents about 10 percent of the gross domestic product, provides more than 800,000 job opportunities, and includes more than 3,000 small and medium companies working in the field of supply.

Thailand is a major regional center for the automobile industry, attracting prominent international companies, including BYD and Toyota Motor.

India's services sector growth accelerated during October to its highest pace in 4 months, driven by improved domestic demand that boosted new business, while companies showed a slowdown in the pace of hiring with weak external demand, according to a survey whose results were published on Wednesday.

The HSBC Purchasing Managers' Index for the services sector rose to 55.8 points in October, compared to 55.2 points in September, but it came below the initial reading of 56.2 points. Readings above 50 points indicate growth, according to Reuters.

The acceleration in activity was supported by an increase in new business, which recorded the fastest pace of growth since June, thanks to strong domestic demand.

In contrast, external demand remained weak, with growth in new export-oriented business slowing to its lowest levels in 45 months.

The weakness of external demand was reflected in the labor market. Employment growth has almost stopped, recording its slowest pace in 10 months, and similar to the level recorded in June.

Regarding prices, inflationary pressures eased during the month, with prices for services provided to customers rising at the slowest pace in 4 months, while inflation in input costs slowed to the lowest level in more than 6 years, despite companies continuing to report higher costs of electricity, labor, raw materials, and transportation.

On the other hand, business confidence declined compared to September, and remained below its long-term average, reflecting continued caution about growth prospects, despite improved activity.

In an additional indication of improved private sector performance, the composite purchasing managers index, which includes the manufacturing and services sectors, rose to 56.2 points in October, compared to 55.9 points in September, recording its highest level in 4 months.