Why is confidence rising in the construction industry when it appears set for recession?

Why is confidence rising in the construction industry when it appears set for recession?

I have noted from conversations I have had recently a more confident air about the future within construction this side of the New Year. And the latest Markit/CIPS survey seems to add to this anecdotal evidence with its finding that confidence in the sector in January improved “to the second-strongest degree in the survey history to reach the highest since May 2011”. I’m not sure what that actually means in numbers but it sounds like a lot of improvement.

It’s time for Shapps to find a big bazooka

It’s time for Shapps to find a big bazooka

In September 2010 Grant Shapps set a “Gold Standard” against which he, as housing minister, would be judged – to see a house-building rate at least matching that achieved before the recession. There are few targets (political hostages to fortune, perhaps) discernable from the reams of documentation and hours of speeches and statements made by this Government. But this is one. It is important. The consensus is England needs more homes. Sorry, a lot more homes, more even than the previous…

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2012 will be a stinker for construction say forecasters

2012 will be a stinker for construction say forecasters

Construction industry forecasters are now expecting a drop in output next year of at least 5%. To put that fall in context, there have only been six worse years recorded since the data series began in 1955. And some might see the latest forecasts as potentially optimistic as they assume the Eurozone manages to muddle through its deepening crisis.

So what should we expect the housing market to do in 2012?

So what should we expect the housing market to do in 2012?

The various data suggesting how house prices shifted over 2011 are mostly in and the vast array of pundits have made their predictions for the market in 2012. So here’s a round up of the prospects for the housing market in the year ahead and a suggestion of what it might all mean for house building. If we look at all the indicators, the picture painted for 2011 was of house prices flatlining. Some indicators were up a little, some down…

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There may be less work in 2012, but that doesn’t mean less opportunity for smart construction firms

There may be less work in 2012, but that doesn’t mean less opportunity for smart construction firms

Expect 2012 to start with industry forecasters shading down their estimates for construction growth. But while workload is likely to decrease in 2012, that does not mean that the opportunities for smart thinking and resourceful construction firms need also shrink. I would argue that the very decline in the economy and the stresses caused open up scope for entrepreneurial thinkers with ideas for improving the built environment.

Why the lag in construction output data may be more important than the ONS seems to suggest

Why the lag in construction output data may be more important than the ONS seems to suggest

The Office for National Statistics today released analysis that says the lag between recorded and actual construction output is 0.24 weeks. If the lag really is less than two days, the ONS would appear to be sensible to do what it has done, the pragmatic thing, ignore it. But is the analysis really convincing?

Glimpses of improvement in housing market, but economic woes continue to dog prospects

Glimpses of improvement in housing market, but economic woes continue to dog prospects

There were positive glimpses within the latest batch of housing statistics. But on balance these seem too weak to deliver a recovery sufficient to propel house building numbers given the drag caused by an enfeebled and uncertain economy. The Home Builders Federation survey showed October to be very significantly better than a year ago for both site visits and net reservations, although both were lower than in September. The Council for Mortgage Lenders estimate for gross mortgage lending in October was…

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Latest output figures suggest construction is sliding into recession

Latest output figures suggest construction is sliding into recession

Today’s construction output figures are a bit of a mixed bag suggesting things are getting worse, but that they were not as bad as we thought they were. The headline figure is that output over the three months to October was down by 1.1% compared with a year ago. And, as is clear from the graph, on the basis of the latest figures the industry does appear to be subsiding into recession. The graph shows the monthly progression of the…

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