Broad based construction recovery to continue

Broad based construction recovery to continue

Construction’s recovery from recession continued into the third quarter according to figures released today by the Construction Products Association, but profit margins fell.

 

CPA’s latest Construction Trade Survey showed activity continuing to rise for the second consecutive quarter in a broad based improvement shared by main contractors, specialists, civil engineers and product manufacturers. A balance of 43% of contractors reported increases in activity which was the second highest level since 2007.

 

Private new housing was the key driver of growth, with 22% of contractors, on balance, reporting increased activity compared to a year ago. Building new orders reached their highest level since 2007 and the most positive sector for new orders was public non-housing – mostly education and health – where a balance of 9% reported improvement.

 

CPA Economics Director Noble Francis said: “Although private housing is clearly driving industry growth, all construction sectors enjoyed increases in output. With rises in new orders and enquiries, the industry clearly expects that the recovery in output will continue over the next 12 months.”

 

Tender prices also increased in the third quarter for the first time in over four years, with 4% on balance reporting a rise. Higher costs, particularly labour, partly offset this however with 49% of building contractors reporting costs rises in the quarter. Profit margin falls were reported by 11% of firms surveyed on balance although 4% reported a rise.

 

Stephen Ratcliffe, Director of the UK Contractor’s Group, said: “These results are more encouraging signs of a turnaround in the construction industry. Housing, as the leading indicator, is still the main growth driver and general construction still has some catching up to do. Nevertheless, the mood music amongst UKCG members is more positive than it has been for some time.”

Please rate

Comments 

Ctrl + Enter

Most Read

Ten highest paying I.T jobs in 2019

Ten highest paying I.T jobs in 2019

The I.T industry is arguably the most in-demand industry for technology/Engineering professionals. Once you have the right skill and certification, the I.T industry will jump at the chance to employ you and grant you a befitting role. From application developers to Data Engineers, the sector is in

H2S: It’s an exciting time to be a civil engineer

H2S: It’s an exciting time to be a civil engineer

The High Speed Two (H2S) has been described as a game-changer and the greatest ever upgrade to Britain's railways, and without doubt, this United Kingdom’s high-speed rail project has been a hot topic. The H2S project aims to meet the United Kingdom’s high

The future of engineering in Artificial Intelligence

The future of engineering in Artificial Intelligence

Artificial intelligence (AI) is an aspect of computer science that is concerned with machine intelligence. Machine intelligence can be described as the theory and development of computer systems to have the capacity to carry out tasks that would ordinarily require human input or intelligence. Some

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.