Case to boost construction grows as ONS figures reveal an industry accelerating into recession
The latest construction output figures suggest the decline is the industry is gathering pace.
Skyscrapers and economic crises revisited. A soothsayer’s perspective on the Shard
I’ve been increasingly worried about the possible collapse of the construction industry into a rather deep recession for some time. I have tended to keep my concerns in check, having gained a reputation for being gloomy. But while it’s tricky to tell accurately with the available data, the new orders figures just don’t seem to be healthy enough to me to support the current level of construction output. Ergo – to my mind at least – a nasty drop in…
Renovation and green agenda support weak construction activity across Europe
The Euroconstruct conference held earlier this month in London provided lashings of gloom, but it also provided plenty of food for thought. The twice-yearly conference brings together the thoughts and expectations of construction economic research groups covering 19 European countries. I have not been for many years and forgot how useful it was to look at the similarities and differences between countries. Even if you are not that interested in other European construction markets, seeing how they are performing helps…
New towns, greater homeownership and localism heavy: a possible Labour housing strategy?
Business Secretary Vince Cable has in recent weeks upped the debate on house building and yesterday called together a mix of top folk from across the housing spectrum to chat about ideas for financing more homes. It’s encouraging. It indicates that the Government is eager to improve the wretched state of house building. But it’s also worrying. Last November the Coalition launched a “radical and unashamedly ambitious” housing strategy for England. What of that?
Output data add to worries over private sector weakness as public sector cuts hit workloads
The latest output figures released by the Office for National Statistics on Friday appear to support growing concerns that the decline in construction workload might be accelerating. Analysis of the data suggests that as the decline in public sector work is gathering pace the recovery in the private sector is petering out.
Why the latest orders figures are so disturbing
The latest official data for new orders in construction could be read as good news. They show an up-tick of almost 5% in the first quarter of this year on the seasonally adjusted measure. That sounds promising on the face of it and many might claim that it is. But that would be to look at a small detail in a much bigger picture that looks far from promising.
Architects, engineers and consultants are boosting turnover as they focus on overseas markets
UK architectural and engineering services businesses are now turning over more in cash terms than they were at the peak of late 2008. That at least is what the latest Turnover and Orders in Production and Services Industries data from the Office for National Statistics suggests.
Construction employment falls despite growth in self employment
For many economists and commentators the employment data released today by the Office for National Statistics were better than expected. The figures hint at a few more people employed and a few fewer unemployed people across the economy, if we look at the seasonally adjusted data. But compared with a year ago the number of people employed is pretty much the same, given the potential for errors inevitable in such data.
Whatever the revisions to the official figures they point to a tough time for construction
The Office for National Statistics confirmed its preliminary estimate that construction was again in technical recession. Indeed its latest estimate is that construction fell further in the first quarter of this year, dropping by 4.8% rather than the 3% it estimated for the GDP figures released late last month. Not too much should be read into the revision. The scope for revisions up and down was great as the initial stab was based on limited data. It was also unclear…
The solution is construction, but the answer is not just any old construction – Part 2
Yesterday’s blog looked at the need to boost construction and the huge benefits the nation gains from focusing on job-intensive work. Today we’ll look at how else we might boost construction to generate economic growth and, interestingly, reduce the deficit. But before that it’s worth noting that favouring job-intensive construction is not just about where to channel public spending. It’s also about how Government frames policy and incentives. Yesterday I received a tweet putting the case for cutting VAT to 5% on repair…