The bad news keeps rolling in for construction
The good news may be rolling in from where the Prime Minister is standing but for construction folk the news just gets bleaker.
Construction firms are shedding jobs as they head for a long dark winter, says buyers’ chief
Today’s construction indicator released today by Markit/CIPS suggests construction firms performed slightly better in October than in September. The index, which is pegged against a no change mark of 50, was at recorded as 50.9 in October, up from 49.5 in September. But in reality this indicator tends for whatever reasons to run a bit hot, judging by past performance. So a score of 50.9 probably should be seen as negative rather than positive. Interestingly if we plot the Markit/CIPS…
What is the optimism in the latest RICS construction survey telling us?
The latest survey of the construction market by the surveyors’ body RICS provides on first reading some confusion, showing optimism rising sharply while workloads fall. The survey has produced a mildly negative balance for surveyors’ workloads. Yet it also showed expectations of improvement in workload, employment and profit at levels not seen since the recession. Curious. What lies behind this surge in optimism among surveyors? Are we seeing green shoots?
The real home truth is that the Government can and should do more to boost house building
The National Housing Federation launched its 2012 Home Truths report today. It’s got lots of coverage, probably because it says again what many already know – there’s a housing crisis and it will put even more pressure on the already stressed and strained housing benefit system. We spend more than £20 billion a year on housing benefit in a bid to keep the poorest out of housing squalor. But thousands more working folk are turning to this benefit as rents…
Some lessons to learn from the constant downward revisions to construction forecasts
The recession in construction will be longer and deeper than we thought three months ago. That is the message in the latest set of industry forecasts emerging this month. This may evoke a sense of déjà vu. Each quarter of late the forecasts have darkened. The latest set look pretty bleak as we can see from the graph.
Construction output continues its rapid decline
There is no getting away from the fact that the construction output data continue to look increasingly scary. If we compare month on month the 12-month total output for construction we see the industry over the past three or four months shrinking by about £1 billion a month, or put another way about 1%. The graph shows the direction of the annualised output.
Why Ed Balls calling to spend 4G windfall on homes could be worth far more than £3 billion
Shadow Chancellor Ed Balls has said Labour would spend the £3 billion or so won from the 4G mobile phone licence sale on building 100,000 new homes. It’s a start. But it’s far from enough to fill the huge gap in house building created by the credit crunch, despite having the now de rigueur 100,000 figure that’s seemingly essential to all housing policy statements today. However, I have a sneaking feeling (probably an irrational hope) that this slightly bold move…
ONS correction to new orders data adds more black eyeliner to a Gothic horror show
It would be easy to attack the Office for National Statistics for miscalculating the new orders figures by £1.2 billion for the second quarter of this year. Yes it’s embarrassing for the organisation. The folk there don’t need me or anyone else to tell them that. By all accounts there was a glitch in the system which chucked out a rare error.
Bank of England agents give construction a gloomy assessment
The worrying downward trend in construction activity comes out strongly in the latest set of Bank of England estimates for the economic activity. Construction ranks the lowest by some margin of the range scores provided by the Bank of England’s agents for August.
Rather than provide growth, private sector new construction has gone into reverse
The construction industry is about 10% smaller than it was a year ago on a quarter-to-quarter comparison and it has been shrinking at almost £1 billion a month recently. That’s pretty scary stuff. It should be scaring the pants off the policy makers.