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Survey Finds Increased Output Across Construction Sector

Ref: 203

Date: Tue 26/Aug/2014, 00:00

Survey finds increased output across construction sector The Construction Trade Survey, released last week, saw a rise in activity across all construction sectors in Q2 2014. 
The results found that growth was led by both private and public commissions. Construction firms noted an increase of 41 per cent in private housing output in comparison with a year ago. Private commercial output, which makes up the largest sector in the construction industry, was said to have grown by 37 per cent. 
Those that took part in the survey include building contractors, specialist contractors, civil engineers, SMEs and product manufacturers.

The Construction Trade Survey, released last week, saw a rise in activity across all construction sectors in Q2 2014. The results found that growth was led by both private and public commissions. Construction firms noted an increase of 41 per cent in private housing output in comparison with a year ago. Private commercial output, which makes up the largest sector in the construction industry, was said to have grown by 37 per cent. Those that took part in the survey include building contractors, specialist contractors, civil engineers, SMEs and product manufacturers.


Businesses also confirmed a 46 per cent growth in publicly funded education and housing construction. The rise signals a welcome return, and a move towards improved capital investment in the run up to the 2015 general election. 

Dr Noble Francis, economics director at the Construction Products Association, confirmed that companies “reported rises in output during Q2”. Firms were also confident that rises would continue to be seen in the coming 12 to 18 months, added Dr Francis.

UK Contractors Group director, Stephen Ratcliffe, urged the government to do more calling for clarity in regards to forthcoming public projects, with a timeline of potential work suggested. Chief executive of the National Federation of Builders, Richard Beresford, further stressed that help was required to ensure the sector continues to show high output, while acknowledging that difficulties still lie ahead.

Rising costs within the sector in Q2, including higher tender prices, may affect the growth in output over the rest of the year. Beresford argues that: “Longer term institutional investment and more easily accessible finance options for the industry would go some way to securing stable, sustainable growth.” 

However, the main focus remains the study’s findings of growth in the sector. Beresford sums it up nicely: “The good news is construction output is rising.”



     
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