Pace of construction quickens

CONSTRUCTION product sales have strengthened during the last three months, exceeding manufacturers’ expectations, according to the latest figures from the Construction Products Association (CPA).

The Association’s Activity Barometer Survey, issued last week, records a score of 68, firmly above the 50 ‘no change’ mark. The improvement in sales volumes follows a period of little improvement during the first half of the year after the decline in output seen during 2005. Manufacturers anticipate a further strengthening in sales growth during the coming three months.

Commenting on the results of the survey, the CPA’s economics director, Allan Wilén, said: ‘The survey findings confirm that the construction industry is continuing to recover from the poor results seen last year. Sales of light-side products are leading the upturn, with an exceptionally strong reading of 75. However, encouragingly, heavy-side manufacturers (aggregates, asphalt, ready-mixed concrete etc) have also reported a marked improvement in their sales volumes, albeit against a poor third quarter of 2005.

‘Looking ahead, light-side firms remain especially positive, both for the final quarter of 2006 and the coming 12 months. In contrast heavy-side firms remain relatively cautious, with the slow progress of road construction plans and other infrastructure projects acting as a drag on growth.’

According the CPA, there are also indications that improved consumer confidence is beginning to lift private sector activity, and the Association anticipates that stronger economic growth should underpin the construction industry into 2007.

Nevertheless, Mr Wilén warned that the position remains delicate and slow public sector investment clearly remains a brake on the construction products industry. ‘Improved delivery of promised investment from government would make all the difference,’ he said.

For further information contact Allan Wilén on tel: 020 7323 3770.