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Tag: construction industry

Housing market seems to be entering a new phase as economic worries grow

Housing market seems to be entering a new phase as economic worries grow

The housing market survey released today by the surveyors’ body RICS adds to other recently released data that all seems to points to a slide in prices everywhere except London – which in housing terms is another country. The RICS data show a negative balance of 23% of those questioned suggesting prices were falling rather over the past three months above those that saw prices rising. This fits with most other house price indicies which suggest that prices are tracking…

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Construction output is heading into decline, but how fast and how far?

Construction output is heading into decline, but how fast and how far?

There was good news in today’s release of the latest GB construction output figures. The data was revised to show the second quarter growth rate at 1.1% rather than the 0.5% published a month ago. But for most in the construction industry it may be all a bit academic how we reinterpret the past. What matters more is what just happened and what does that tell us about what is going to happen. On this score the figures appear on…

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Worst orders figures on record suggest the worst on the ground is yet to come

Worst orders figures on record suggest the worst on the ground is yet to come

There are times when you hope you’re misreading data or that there may be an error. But it doesn’t look as though these crutches are available as I stare at the carnage implicit in the new orders data. The index, which represents a seasonally-adjusted price-adjusted measure of orders taken by contractors for new work has hit a record low. It stands at 57.5 for the second quarter of this year. Five years ago it stood at almost double that. (see…

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Let’s not waste this crisis of confidence over the construction output figures

Let’s not waste this crisis of confidence over the construction output figures

The Office for National Statistics has come in for yet another beating over the construction figures, this time receiving a stern letter of criticism from the chair of the UK Statistics Authority, Sir Michael Scholar. I for one am hopeful that this might prompt a full-scale investigation of the construction output stats, which goes beyond the fact that someone got their sums wrong.

Pre-recession construction industry 7% bigger than we thought – statistically speaking anyway

Pre-recession construction industry 7% bigger than we thought – statistically speaking anyway

Lost in the confusion caused by the adding up error made by the ONS in the original release last week of the construction output figures was one rather significant change to the data series. In rough and ready terms the post-recession construction industry is now officially almost 7% bigger than we used to think it was. Meanwhile, the collapse in construction between early 2008 and early 2010 is now officially calculated to be 16.0% rather than 13.7%.

Lacklustre construction output figures point to decline

Lacklustre construction output figures point to decline

The latest GB construction output figures follow the earlier estimate made for the UK GDP series, which put growth in the second quarter at 0.5%. This was a bit lacklustre. The figures were particularly disappointing after the ONS put out a release which in error put the growth rate at 2.3%. This erroneous figure pointed to an upward revision of 0.1% to be added to GDP when it is next revised. This hope has now been dashed and will not…

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Mid-sized construction firms are being hit hardest financially according to Experian

Mid-sized construction firms are being hit hardest financially according to Experian

Experian has put together what looks like an interesting piece of research that seems to support the view that it is the mid-sized rather than the large or small construction firms that are suffering the most financially in this recession. Basically it suggests that if you are a mid-sized construction company employing 51 to 100 people and based in the North East you’ve probably borne the brunt of the industry’s recession. Before going into more detail, it’s probably worth providing…

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Pan-industry construction survey points to weak private sector recovery

Pan-industry construction survey points to weak private sector recovery

The latest pan-industry trade survey compiled by the Construction Products Association economics team paints a perhaps predictably gloomy picture of the state of the industry in the second quarter of this year. The survey suggests that the upswing it recorded in output from contractors in the first quarter was short-lived. The balance of firms doing more work and those do less is was put at -37%. That’s the worst figures for a year and a half. The more detailed figures…

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RICS sees some positive signs in the private sector, but its London and South East driven

RICS sees some positive signs in the private sector, but its London and South East driven

Viewed from a particular angle the latest construction survey from RICS seems to come out fairly positive given the current circumstances in which the industry finds itself, although it’s not as upbeat as yesterday’s serving from Markit/CIPS. Workloads are broadly flat according to the RICS survey respondents, which is a bonus in my book given the state of the economy and the outlook.

Markit/CIPS survey suggests solid growth in construction in July, was growth that solid?

Markit/CIPS survey suggests solid growth in construction in July, was growth that solid?

The latest Markit/CIPS PMI construction survey provides on the face of it reasons to be content if not cheerful in these days when gloomy news is served so liberally. Its monthly PMI indicator for July read 53.5 against 53.6 in June. This suggests sound if not spectacular growth (see the graph taken from the press release (pdf)), which seems rather at odds with the more downbeat noises coming from across the industry.