Construction survey indicates broader growth ahead

Construction activity rises for second consecutive quarter with growth across all areas of the industry

THE latest Construction Trade Survey, published this week, shows that activity in construction rose for the second consecutive quarter in the three months from July to September. Moreover, this growth was reported by firms across all areas of the industry, including building contractors, SMEs, specialist contractors, civil engineers and product manufacturers.

Commenting on the survey, Noble Francis, economics director at the Construction Products Association, said: ‘It was encouraging to see that the recovery, which started in the second quarter, has continued into the third quarter (Q3). A balance of 43% of contractors reported rises in activity, the second highest level since pre-recession 2007.

‘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.’

Stephen Ratcliffe, director of the UK Contractors Group (UKCG), said: ‘These results are more encouraging signs of a turn round in the construction. 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 among UKCG members is more positive than it has been for some time.’

Julia Evans, chief executive of the National Federation of Builders, added: ‘Confidence is returning to the industry and we are seeing measurable signs of growth and a healthy number of orders. However, the cost of doing business continues to rise as materials and labour cost increases far outpace revenues.’