BANGKOK (Reuters) -Thailand's central bank chief said on Tuesday that this year's economic growth and inflation were expected to be lower than previously forecast.

Last month, Bank of Thailand Governor Sethaput Suthiwartnarueput had said 2023 growth could come below the central bank's 3.6% forecast and a revised figure would be published in September. Last year's growth was 2.6%.

Inflation would gradually return to within target range, he said. A Reuters poll expects a rise of 0.61% for August. Data is due out later on Tuesday.

The current policy interest rate was close to a neutral level, Sethaput said. On Aug. 2, the central bank raised its key interest rate for a seventh straight meeting to 2.25%. It will next review monetary policy on Sept. 27.

"A neutral rate means it helps inflation stay in a sustainable range, and GDP grow at its potential of 3-4% without creating financial imbalances," he said.

The BOT has hiked the key rate by 175 basis points since August last year to curb price pressures.

Overall, the Southeast Asian country's economic recovery remains intact, Sethaput said, adding that 29 million foreign arrivals are still expected throughout the year.

Tourism remains a key driver, accounting for about 12% of GDP before the pandemic.

Speaking virtually at a Fitch economic seminar, he said second-quarter GDP was disappointing.

Thailand's economy grew 1.8% in the April-June period on the year and 0.2% on the quarter, sharply slowing from the previous quarter's 2.6% and 1.7%, respectively, as exports slumped.

TOKYO (Reuters) - Japanese household spending suffered its biggest drop in nearly 2-1/2 years squeezed by rising prices, although volatility in some items meant the outlook might not be as gloomy as the headline figures suggested.

Japan's economy grew much faster than expected in the second quarter, helped by the end of COVID-19 curbs and a resurgence in inbound tourism, and analysts expect private consumption to support overall growth amid weakness in global demand.

The household spending fell 5.0% in July from a year earlier, official data showed on Tuesday, sliding for five consecutive months and more than the median market forecast for a 2.5% decline.

On a seasonally adjusted month-on-month basis, household spending was down 2.7%, versus an estimated 0.5% gain.

Spending on dining out, transportation, culture and entertainment services increased with an uptick of the number of people who went out, but there were declines in a wide range of areas such as food and housing, an official at the Ministry of Internal Affairs and Communications said.

"The impact of price hikes has been felt to some extent," the official said, though he noted that the 5.0% drop included items that fluctuate widely such as housing and automobile purchase.

Japan's core consumer price index, which includes oil products but excludes volatile fresh food prices, rose 3.1% in August followed by a 3.3% increase the previous month. It held above the Bank Of Japan's 2% inflation target for the 16th straight month.

On the whole, private consumption will continue to recover as economic activity normalises and the decline in real wages is expected to narrow, said Masato Koike, economist at Sompo Institute Plus.

"Rising wages and the normalization of economic activity will lead to a recovery in consumption," Koike said.

That view was supported by a private survey showing Japan's service sector activity expanded at its quickest pace in three months in August, underpinned by robust consumer spending as inbound tourism regained momentum.

To view the data on the website of the Ministry of Internal Affairs and Communications, click here:

SEOUL (Reuters) - South Korea's annual consumer inflation accelerated to 3.4% in August while the month-on-month rate was the fastest since early 2017, which should keep policymakers on alert for any sustained uptick in prices.

The Bank of Korea (BOK) last month held interest rates steady for a fifth straight meeting, as it continued to prioritise price stabilisation amid heightened growth risks.

On a monthly basis, the consumer price index (CPI) rose 1.0% in August, after gaining 0.1% in the prior month, official data showed on Tuesday, beating economists' median forecast for a 0.3% rise in a Reuters survey.

Annual inflation, which accelerated for the first time in seven months, also topped the 2.7% expected by economists, and marked the quickest since April. It followed a 2.3% rise in July, which was the slowest in 2 years.

The BOK has said consumer inflation is likely to accelerate to around 3% in August and September, before easing again, meaning the latest figures should not come as a surprise to policymakers.

Commenting on the data, the finance ministry said the inflation rate was affected by temporary factors such as adverse weather conditions, along with a rise in global energy prices, but that the overall slowing trend in prices was maintained.

Broken down by sector, prices of petroleum products jumped 8.1% over the month, agricultural prices surged 10.5%, while public service prices climbed 0.5%.

Core CPI, which excludes volatile food and energy prices, rose 3.3% on an annual basis, unchanged from the previous month.

(Reuters) -China is launching a campaign to revive its lagging stock market, and boost investor confidence in an ailing economy. A slew of measures announced include reducing trading costs, slowing the pace of initial public offerings (IPOs), encouraging margin financing and protecting small investors.The securities regulator also introduced fresh measures on Friday to improve the two-year old Beijing Stock Exchange, focusing on boosting the market's liquidity. Here are what the authorities have done, and what more to expect.

IMPROVING BEIJING STOCK EXCHANGE:

China Securities Regulatory Commission (CSRC) aims to boost liquidity in the market by relaxing investor thresholds and improving trading mechanisms. The team of market-makers will be expanded, and all shares listed in the market will be eligible for margin financing, the CSRC said.

The CSRC said it will guide more mutual funds to expand their investments in the market.

It will seek to reform and invigorate the market, focusing on funding innovative small companies that specialise in niche sectors. The securities regulator also issued rules to ease listing rules and improve listed companies' quality.

TRANSACTION COSTS:

The stamp duty on stock trading was halved on Aug 28, the finance ministry announced. Transaction handling fees submitted by brokers to the exchanges had also been reduced, according to the CSRC.

Chinese stock exchanges will also lower margin requirements to encourage financing by investors. The measure will be effective on September 8th.

And, following CSRC guidance, a growing number of mutual fund companies are cutting management fees.

CAPITAL RAISING AND REFINANCING:

The CSRC said China would slow the pace of initial public offerings (IPOs) to promote a dynamic balance between capital raising and investing activities.

The CSRC will also tighten restrictions on refinancing activities by listed firms, targeting loss-making and underperforming companies.

PROTECTING SMALL INVESTORS:

The CSRC tightened rules on large shareholders' selling shares when the traded price is lower than its IPO price or net asset value per share, or when the company has not declared enough cash dividends in the past three years.

The CSRC tightened scrutiny over programme trading after some investors blamed the programmes for increasing market volatility.

Disappointing some market players, the CSRC kept in place a bar on traders buying and selling shares on the same day, arguing that it could drive speculation and harm small investors.

Currently, investors in China can only sell stocks on the second day after their purchase.

MORE TO COME:

China's securities regulator approved the launch of 37 retail funds, signalling faster registration for index funds and boosting the development of equity funds. Market participants expect the emergence of more innovative index products.

The regulator is working on optimizing rules covering share repurchases, including relaxing requirements when share prices tumble. Company share repurchases are considered a good sign by investors, as it implies the stock is undervalued.

The regulator pledged support to key break-through technology companies and is evaluating more options to meet those companies' financing needs.

The CSRC is planning to involve more long-term investors such as pension funds in investing in China's capital market.

The regulator is also studying the possibility of extending trading hours.

By Arathy Somasekhar

HOUSTON (Reuters) -U.S. crude oil stocks have fallen to their lowest level this year and likely will shrink further, analysts said, as record demand, producer supply cuts, weaker futures and rising storage costs all point to increasing drawdowns.

A tight crude market is poised to extend into 2024 and add upward pressure on global oil prices, they said. In a bullish sign, U.S. inventories last week dropped 10.6 million barrels, hitting the lowest level since December 2022's 420.65 million barrels. [EIA/S]

"We are already around 2022's close and I don't think we are getting a build in the second half of the year," said Al Salazar, a senior vice president at energy technology firm Enverus. "$100 a barrel (for Brent crude) is definitely within striking range."

Brent crude futures were trading at $88.08 a barrel on Friday, while U.S. crude futures were trading at $85.16 per barrel.

World demand is poised to hit a record high this year on strong air travel, power generation needs and surging Chinese petrochemical activity, the International Energy Agency forecast in August. Demand could grow this year by 2.2 million barrels per day (bpd) to 102.2 million bpd.

Oil supply will not match the rise in demand, the IEA said, adding it expects output to rise by 1.5 million bpd. Supply has fallen after Saudi Arabia voluntarily cut output in recent months and is likely to outweigh increases in U.S. shale and by Iran and Venezuela.

INVENTORY WITHDRAWALS

Overall, U.S. oil production could average 12.8 million bpd in 2023, but analysts are skeptical that shale gains can be sustained without a sharp increase in drilling activity. Active U.S. oil rigs this month fell to the lowest since February 2022. [RIG/U]

Near-term U.S. oil prices also are higher than futures, which has further encouraged withdrawals from inventory. U.S. crude for delivery in October recently traded about $6 higher than for delivery 12 months out.

Even when six-month futures in late July briefly rose above those for October delivery, U.S. stocks fell as central bankers raised interest rates, lifting costs to buy and store oil.

"It's going to be pretty difficult to incentivize that storage," said Christopher Haines, an analyst at Energy Aspects.

Prices of crude for future deliveries need to trade at least 50 cents above October prices before it is profitable to store crude, said Ernie Barsamian, chief executive of terminal storage clearinghouse The Tank Tiger.

That compares with estimates of 10-20 cents when interest rates hovered around 1%.

"We are likely moving to a new normal of lower inventory forward cover," analysts at Energy Aspects wrote in a note.

BEIJING (Reuters) - China's central government has approved setting up a special bureau within the National Development and Reform Commission (NDRC) to promote the development and growth of the private economy, the NDRC said on Monday.

The bureau will be responsible for devising policies to promote the development of private companies, both domestically and in terms of their international competitiveness, and provide a trouble-shooting function, said Cong Liang, the state planner's vice chairman.

The private sector is responsible for 80% of new urban jobs, but has struggled to attract investment amid a frail economic recovery over the first half of the year, with business owners also constrained by weak domestic demand.

"This is a powerful initiative ... that fully reflects the great importance the Chinese Communist Party Central Committee attaches to the private economy," said Zhang Shixin, an official within the state planner.

Few analysts expect policymakers to introduce any aggressive stimulus due to concern about debt and financial risk, with the government instead likely continuing to introduce incremental measures in the face of sustained pressure to shore up growth.

(Reuters) - As an awful August gives way to an uncertain September, investors hope this month will confirm that the seemingly relentless rise in interest rates will end soon, meaning respite for both stocks and bonds.

But there are a few snags. This September is chock-full of risk events, including central bank meetings, a G20 summit and make-or-break data, not to mention that it tends to be the worst month of the year for the mighty S&P 500.

Here's a look at the week ahead in markets from Ira Iosebashvili in New York, Kevin Buckland in Tokyo, Dhara Ranasinghe, Libby George and Naomi Rovnick in London.

1/ SCARY SEPTEMBER

Now the Federal Reserve's Jackson Hole confab is over, investors are strapping in for a potentially volatile month. 

The S&P 500 tends to post its worst monthly performance in September, with an average decline of 0.7%, according to CFRA data going back to 1945.

There are plenty of catalysts for volatility. The Sept. 13 U.S. inflation reading would likely have to support the narrative of cooling consumer prices and resilient growth that has boosted stocks for most of the year.

Investors will also scrutinise the message from Fed Chairman Jerome Powell after the central bank's Sept. 20 meeting to determine the likelihood of another hike this year.

Meanwhile, there's a risk of a fourth federal government shutdown in a decade if squabbling lawmakers cannot reach a deal by Sept. 30, when funding runs out with the end of the current fiscal year. On the data front, U.S. services sector activity is due Wednesday.

2/ THE SICK MAN OF EUROPE

Germany looks likely to be the only major economy to contract this year. Business activity there shrank at the fastest pace in over three years in August, business sentiment has deteriorated and the economy stagnated in the second quarter.

No wonder the region's economic powerhouse is once again being called the sick man of Europe.

July industrial orders and production data in the coming week may reinforce that perception, supporting the case for the ECB to leave rates unchanged in September.

Germany's coalition just agreed a 7 bln euro ($7.56 bln) corporate tax relief package to give the economy what Chancellor Olaf Scholz called a "big boost".

But economists are sceptical, noting that at just 0.2% of GDP, the package is no game-changer and that the sick man will need more medicine.

3/ A BRIGHTER G20?

Some progress this summer on debt deals for the string of struggling emerging economies in, or facing, default has sharply driven up year-to-date returns for the sovereign bonds for Pakistan, Sri Lanka, Ghana and Zambia.

This bright spot could, during the G20 Summit in Delhi, support ongoing efforts to tackle the persistent, damaging debt crisis among developing nations.

Multilateral institutions and creditor countries have used most international gatherings to refine the Common Framework agreement that was meant to make recovering from debt distress quicker and easier.

But the absence of China’s President Xi Jinping in Delhi could cast a pall. China has become the biggest bilateral lender to some developing nations in recent years, and its reluctance to make bigger concessions during restructuring efforts has been a core sticking point.

4/ SMOOTH TRANSITION

    The Reserve Bank of Australia is set to hold rates steady for a third straight meeting on Tuesday, as Governor Philip Lowe prepares to pass the baton to deputy Michele Bullock.

    A sharp cooling of inflation hints at an easier road for Bullock, after Lowe's (NYSE:LOW) controversy-filled legacy of painful backtracks and abrupt shifts that cost him a second term.

    Rates are at an 11-year high of 4.1% after 400 bps of tightening since May 2022. Traders expect that to be the peak, after inflation unexpectedly eased to a 17-month trough below 5% in July.

    But it won't be all plain sailing. Economic risks in top trade partner China are ramping up right as things at home look rosier.

5/ BoE ON THE CUSP

Is Britain's economy slowing enough for the Bank of England to end its battle against inflation?

UK retail sales for August, as measured by the British Retail Consortium on September 5, may harden the view expressed in other surveys that consumers are deeply cautious.

Sentiment has soured alongside a slowing housing market, following 14 back-to-back rate increases. Monthly house price data from Halifax on September 7 will indicate whether the 9-trillion pound ($11.37 trillion) UK residential property sector has weakened further.

But the economy, which has defied recession forecasts, could still get a boost.

Headline inflation dropped to 6.8% in July, energy costs are set to fall from October and wage growth is now positive in real terms.

If this sends Brits flocking back to the shops, it could strengthen the BoE's resolve to stay tough on inflation.

($1 = 0.7914 pounds)

Investing.com -- After Friday’s jobs report cemented expectations that the Federal Reserve will keep interest rates on hold later this month, the economic calendar will be lighter in the coming holiday-shortened week. Stocks go into September after notching up strong weekly gains last week, while data out of China will likely add to concerns over the outlook for the world’s number two economy. The Reserve Bank of Australia will likely stand pat for a third straight meeting and supply worries look set to underpin oil prices.

U.S. economic data, Fedspeak

Friday’s jobs report was the latest in a series of economic data indicating that the economy is heading for a so-called soft landing, adding to the view that the Fed is nearing the end of its rate hiking cycle.

Data in the week ahead is unlikely to do anything to alter this view significantly.

On Wednesday the Institute for Supply Management will release August data on service sector activity, with economists expecting it to soften slightly.

The same day the Fed will publish its Beige Book, a survey of economic activity across all the bank’s 12 districts.

Investors will also get the chance to hear from several Fed speakers during the coming week, including Dallas Fed President Lorie Logan, who speaks Wednesday followed a day later by appearances from New York Fed President John Williams, Governor Michelle Bowman, Governor Michael Barr and Chicago Fed President Austan Goolsbee.

Stocks kick off September

The Dow and the Nasdaq climbed 1.4% and 3.2% last week, respectively, posting their strongest weekly performances since July. The S&P 500 gained 2.5% for its best week since June.

Friday’s jobs report bolstered expectations for the Fed to pause rate hikes at its meeting later this month.

"The data makes the case for the Fed becoming more dovish as we head into the fall. If the end of tightening comes sooner than later, that could lead to a substantial rally in stocks," Keith Buchanan, a portfolio manager at GLOBALT Investments in Atlanta told Reuters.

Interest rate futures suggest traders now see a 94% chance the U.S. central bank will keep interest rates unchanged at its Sept. 19-20 meeting, according to Investing.com’s Fed rate monitor tool.

The U.S. stock market will remain closed on Monday for the Labor Day holiday.

China data

Economic data out of China in the coming week is likely to indicate that the economic recovery in the world’s second largest economy remains fragile amid weak demand in key export markets and a deepening domestic property crisis which has added to downward pressure on growth.

The Caixin services PMI for August is due on Tuesday and is expected to show the expansion in the service sector slowing slightly last month.

Trade data on Thursday is forecast to show that exports and imports contracted again in August from a year earlier, albeit at a slower pace than in July.

Market watchers will also be looking to August CPI data on Saturday with consumer prices expected to tick higher after slipping into deflation territory in July.

Chinese authorities have rolled out a series of measures aimed at reviving the faltering economy, but many analysts see only a slim chance for more drastic stimulus amid concerns over mounting debt risks.

Oil surges on supply concerns

Oil prices surged to their highest level in more than seven months on Friday, snapping two weeks of losses amid concerns over the tightening supply outlook.

For the week, Brent rose about 4.8%, the most it has increased in a week since late July. Crude Oil WTI Futures advanced by 7.2%, their biggest weekly gain since March.

Saudi Arabia is widely expected to extend a voluntary 1 million barrel per day oil production cut into October, prolonging supply curbs engineered by the Organization of the Petroleum Exporting Countries (OPEC) and allies, known collectively as OPEC+, to support prices.

"There is a realization the economy is not falling off the map, and signs that demand is near record highs," said Price Futures Group analyst Phil Flynn. "People have to face the cold, hard reality that supplies are below average."

The demand outlook in the U.S. remains robust, with commercial crude inventories declining in five of the most recent six weeks according to data from the U.S. Energy Information Administration.

Reserve Bank of Australia decision

The RBA is expected to hold rates steady for a third straight meeting on Tuesday, after recent data pointing to a faster-than-anticipated cooling in inflation.

Rates are at an 11-year high of 4.1% after 400 basis points of increases since May 2022. Traders expect that to be the peak, after inflation unexpectedly eased to 4.9% year-on-year in July, the lowest rate since it peaked last December at 8.4%.

In addition, the most recent jobs report showed that the unemployment rate rose to 3.7% in July from 3.5% in the prior month, adding to expectations for the RBA to stand pat.

--Reuters contributed to this report

By Lucia Mutikani

WASHINGTON (Reuters) - U.S. job growth likely slowed in August, partly reflecting striking Hollywood actors and the bankruptcy of a major trucking company, but the unemployment rate probably held at more than 50-year lows as labor market conditions remain tight.

There is a tendency for the initial nonfarm payrolls count to be weaker in August. As such, economists are cautioning against reading too much into any sharp deceleration in job gains when the Labor Department's publishes its closely watched employment report on Friday.

Investors should focus on the trend, which will likely show a gradual loosening of the labor market because of the Federal Reserve's hefty interest rate increases to cool demand in the economy, economists said. The report, which is also expected to show moderate monthly wage growth, is seen reinforcing views that the U.S. central bank will not hike rates this month.

"There's going to be noise, but look at the trend, which is sort of a gentle slope downwards, it's not like anything really abrupt," said Brian Bethune, an economics professor at Boston College. "We're in a transition phase, so we have to be careful we don't throw the baby with the bath water."

Nonfarm payrolls likely increased by 170,000 jobs last month after rising 187,000 in July, according to a Reuters survey of economists. That would be the third straight month of job gains under 200,000 since December 2020. Still, employment growth would be more than the roughly 100,000 jobs per month needed to keep up with the increase in the working age population.

The Labor Department's Bureau of Labor Statistics, which compiles the employment report, reported that there were almost 18,000 workers on strike during the period it gathered data for August's report, including 16,000 Screen Actors Guild-American Federation of Television and Radio Artists members.

Striking workers are not counted as employed. Yellow (OTC:YELLQ) Corp trucking filed for Chapter 11 bankruptcy in early August, leaving about 30,000 workers unemployed. These two factors will impose a one-time drag on employment. August payrolls also have a tendency to initially print weaker relative to the consensus estimate and recent trend before being revised higher later.

"The initial August payroll change has been under-reported and then revised higher with the September and October employment reports in 12 of the last 14 years," said Conrad DeQuadros, senior economic advisor at Brean Capital in New York. "August payrolls have also initially printed weaker than the prior three-month average change for 12 straight years, and have come in below consensus forecasts in nine of the last 12 years."

Economists had no explanation for this phenomenon. Signs are mounting that demand for labor is slowing, though some services businesses like restaurants, bars and hotels remain desperate for workers. Job openings dropped to the lowest level in nearly 2-1/2 years in July, the government reported this week.

The slowdown in demand is, however, not being accompanied by a rise in layoffs, with companies largely retaining workers after difficulties hiring during the COVID-19 pandemic.

Economists say employers will cut hours for workers before resorting to mass layoffs. The average workweek is at three-year lows, with most industries back to pre-pandemic workweeks.

The unemployment rate is forecast to have been unchanged at 3.5%, a level not seen since 1969. It is below the Fed's latest median estimate of 4.1% by the fourth quarter of this year. With inflation generally slowing, most economists believe the central bank is done hiking rates.

Since March 2022, the Fed has raised its policy rate by 525 basis points to the current 5.25%-5.50% range. Financial markets expect the central bank will leave its benchmark overnight interest rate unchanged at its Sept. 19-20 policy meeting, according to the CME Group's (NASDAQ:CME) FedWatch Tool.

"We think the Fed is likely finished raising rates," said Dean Maki, chief economist at Point72 Asset Management in Stamford, Connecticut. "This (job growth) would be one more piece of evidence that would be consistent with that, but that also depends a lot on the upcoming inflation data."

With the labor market still tight, wage growth remains strong, though the pace of increase has slowed from early in the year. Average hourly earnings are forecast to have increased 0.3% in August after rising 0.4% in July.

In the 12 months through August, wages likely advanced 4.4%, matching July's gain.

"We suspect that July's reading was boosted by calendar effects, which reverses in August," said Ellen Zentner, chief U.S. economist at Morgan Stanley in New York. "July's payroll survey included more weekend days."

Solid wage gains are helping to underpin consumer spending and keeping a recession at bay, and creating a feedback loop that is keeping the labor market humming.

By Jonathan Cable

LONDON (Reuters) - British home prices will fall 4% this year, more than was thought a few months ago, as high interest rates and living costs keep potential buyers out of the property market despite a shortage of supply, a Reuters poll showed.

Average prices soared over 20% during the COVID pandemic as buyers took advantage of record-low interest rates and sought more living space, and from peak to trough are only expected to drop around 5%.

But, with inflation running at several multiples above its target, the Bank of England (BoE) embarked on an aggressive policy tightening road and has added 515 basis points to borrowing costs from just 0.10% in less than two years, making it much more expensive to pay off a mortgage.

Average home prices were predicted to fall 4% in total in calendar 2023, slightly more than a 3% drop predicted in a poll published in June but not as bad as some had expected earlier, the Aug. 14-30 poll of 18 market specialists showed.

The most pessimistic forecast was for a 10% fall, despite consumer prices expected to rise 7.5% this year, according to a separate Reuters poll.

They were expected to flatline in 2024 and rise a little over 3% the year after, little changed from the previous poll.

"Forward-looking indicators are continuing to show a decline in buyer demand and negative price expectations. This is largely the result of higher mortgage costs negatively impacting affordability and placing downward pressure on house prices," said Michael McGill at real estate firm CBRE.

"We expect prices to recover from 2024, underpinned by an improving economic backdrop."

There was evidence of a housing market slowdown in BoE data published on Wednesday as mortgage approvals by banks and building societies in July dropped more than expected, while property website Zoopla said the number of house purchases this year was on course to drop 21% to its lowest since 2012.

In London, where homes are usually far more expensive, prices were expected to fall 5% this year but increase more than nationally in the following two years with rises of 2% and 5% pencilled in.

However, there is a huge divergence between London boroughs.

"The London housing market ebbs and flows, yet is there really such a thing as a 'London property market' nowadays?" asked property consultant Russell Quirk.

"Can we truly categorise what happens in Kensington and Mayfair with oodles of foreign buyers hunting trophy homes, alongside the blue collar demographic of Barking and Dagenham?"

While the average asking price for a home in the capital was 672,961 pounds ($853,314) in August, according to property website Rightmove (OTC:RTMVY), a buyer in Kensington would expect to pay on average 1,667,486 pounds yet in Barking and Dagenham it was 367,526 pounds.

RENTAL STRESS

Those unable or unwilling to make it onto the property ladder will feel the pinch from surging rental costs.

When asked what would happen to average rents for the rest of the year all 13 respondents to an additional question said they would rise, including nine saying they would do so significantly.

So unsurprisingly 12 of 14 participants said rental affordablility would worsen over the coming year.

"The build-up of a long-term supply issue combined with soaring landlord costs are set to continue pushing up rents for the foreseeable future," said Aneisha Beveridge at estate agency Hamptons.

Private rental prices paid by tenants in Britain rose 5.3% in the 12 months to July, according to the Office for National Statistics.

($1 = 0.7886 pounds)

(For other stories from the Reuters quarterly housing market polls:)