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Tag: construction industry

RICS construction survey provides more worries than hopes

RICS construction survey provides more worries than hopes

Construction workload is falling and we should expect it to fall further. That basically is what the latest survey from the surveyors’ body RICS suggests. The lines on the graph 1 are pretty clear. There are firms doing more work (blue line), but there are more firms doing less (red line). And on balance there is a majority of firms of the view that workloads will fall over the next 12 months (green line). But given that this survey data…

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Construction folk take more than the fair share of pain as inflation rises and earnings fall

Construction folk take more than the fair share of pain as inflation rises and earnings fall

With all the fuss about inflation and the impact that it is having on families, I thought I might just take a look at what its impact might be on construction folk. So here are some very crude figures taken from the average weekly earnings non-seasonally adjusted data including bonuses and arrears. Average weekly earnings in construction have dropped 1.1% between November 2007 and November 2010 according to the latest official figures.

November construction output figures suggest it’s downhill from here

November construction output figures suggest it’s downhill from here

Construction output is beginning finally to show signs that it is falling into a much-expected second dip into recession after the stimulus-propelled growth earlier this year. The latest figures from the Office of National Statistics show that on a moving three-month basis the industry contracted by 1.5% in volume terms in November. The graph (right) shows the moving three-month total for output, with simple straight line estimates for monthly movements in the totals made for the pre-2010 data, which was…

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Warning signs over construction cost inflation

Warning signs over construction cost inflation

The latest construction survey put together by Markit for the buyers’ professional body CIPS suggested that there are growing signs of substantial increases in the input prices faced by construction companies in the UK. It reckoned that the rate of inflation was the fastest in seven months and above long-run series average. The survey panellists attributed this to the rise in raw material prices. I’m not sure how they work out with any great certainty the comparative rate of inflation, given the…

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Little cheer in public accounts or growth figures as construction prepare for the big squeeze of 2011

Little cheer in public accounts or growth figures as construction prepare for the big squeeze of 2011

Today’s release of the public sector finances will be a knock to the Chancellor George Osborne as they show borrowing up more than expected. Indeed at £23.3 billion (net of any financial interventions) in cash terms that is the most the UK has had to borrow in a month ever, at least as far as I could see. And tomorrow we will most likely see the official statistics for UK economic growth in the second quarter revised down – probably…

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Imports figures support official stats showing a strong bounce back for construction in 2009

Imports figures support official stats showing a strong bounce back for construction in 2009

Here’s a couple of graphs that hopefully will bring a little Christmas cheer to the statisticians at ONS who have been putting together the much queried new construction output figures. They may also bring a little cheer too to the statistics team that puts together the building materials imports figures, which also come in for criticism from time to time. Constant criticism, sadly, is the lot of the statistician. (And in the spirit of credit where credit is due, I…

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Construction firms axe jobs ahead of double-dip downturn

Construction firms axe jobs ahead of double-dip downturn

The number of jobs in the construction industry fell by 17,000 in the third quarter of this year despite the continued swell in work resulting from the now fading effects of the economic stimulus. Indeed the rather lacklustre set of labour market figures released today may well be read by some as an early sign of momentum fading in the economy at large. Certainly the drop in construction job numbers will lead many to suspect that firms are already trimming…

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Latest output data suggests the stimulus-generated surge in construction might be over

Latest output data suggests the stimulus-generated surge in construction might be over

The latest monthly construction output figures suggest that the surge in work seen in the mid part of 2010 is beginning to fade. A significant pulling forward of public spending helped to underpin housing construction, to propel publicly funded work and engender more confidence in private sector construction work. This created a swell in construction activity, which has caused some kerfuffle among economists as it has been the main driver of overall growth in the economy – although recent revisions…

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Halifax shows continued slide in house prices…but the real market test comes in the New Year

Halifax shows continued slide in house prices…but the real market test comes in the New Year

The Halifax house price index crept down today and appears to be on a path of slow decline, which is broadly in line with most other house price indicators. And as we can see from the graph transactions remain subdued and mortgage approvals are also on a gentle downward slide. But while the current slide in the market may be unsettling, it will be the next few months that will prove particularly nail biting for those whose fortunes are pinned…

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Forecasters foresee a long road to recovery for construction

Forecasters foresee a long road to recovery for construction

The latest forecast for construction growth to emerge from the Construction Products Association suggests that construction will not see growth of any significance for at least the next two years.  However, while the central projection is for a distinct double-dip in workload, even the most pessimistic scenario presented by the forecasters does not envisage a drop in construction much beyond 5%.  That would be painful but far from as dramatic as the 17% collapse from the peak quarter at the start of 2008…

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