UK Construction Industry builds on Growth

posted 15.11.2013

The UK construction industry has just enjoyed the first two straight quarters of growth for two years. The
figures released last week show construction output rose 1.7% in the third quarter which built on the 1.9% growth from April to June.

New work was the big driver increasing to 3.1% on the last three months, but repair and maintenance activity actually slipped back by 0.6%.

Steve McGuckin, UK Managing Director of the global construction and project management consultancy, Turner & Townsend, said: ?Despite missing a stride in September, the construction sector is running, not walking, back to health?

?After two straight quarters of solid growth, the recovery now has some genuine momentum. The South East?s property boom has spurred house builders into action.  The power of the housing sector to influence the overall figures is clear ? it now accounts for nearly a fifth of all construction output, and has more than mitigated the falling levels of infrastructure output.?

?But despite the strong pipeline of work and resurgent levels of confidence, the market is suffering growing pains,? he warned. Supply of building materials in the hotspot regions is struggling to keep up with demand. This is driving up input prices, and many in the industry are predicting further price rises of 3% to 8% next year.?

?The regional imbalance is still marked too ? with many parts of the country full of hopes and ideas but precious few cranes. It is likely to be another twelve months before the strong growth seen in the South East can hope to reach everywhere.?

Year-on-year ONS comparisons show construction output jumped 4.1% in the third quarter, driven again by new work up 6.1%.

Within the new work category, private new housing jumped 15.6% and private commercial other new work by 12.5%, while infrastructure fell by 3.7%. These three sectors now account for three quarters of new work output, worth £13.1bn from July to September.

Recipro sourced this article from Construction Enquirer.

Category: general, in the news