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Tag: construction industry

Construction will not come out unscathed from Osborne’s Budget, but it could’ve been worse

Construction will not come out unscathed from Osborne’s Budget, but it could’ve been worse

Given the potential for increased pain in the gift of George Osborne there will be a feeling that construction hasn’t come out as badly as it might have from the emergency Budget. But “unavoidably”, as Chancellor Osborne might say, the construction industry will have to share some of the pain for the folly of the banks as the nation seeks to balance its budget. There will however have been a great deal of relief when the Chancellor said that capital spending…

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Technical glitch delays publication of construction jobs figures, so in the meantime…

Technical glitch delays publication of construction jobs figures, so in the meantime…

I had hoped to bring you news and a view on the latest jobs figures for construction, but a technical glitch (no more detail available from the press officer I quizzed) meant we will have to wait a further month before the data on construction jobs to March are released. So as I had set aside some time to discuss the latest employment figures, what do we think of the broad numbers? I was a bit disappointed to see the…

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Better than expected, but pre-Budget forecast will not spare construction’s pain

Better than expected, but pre-Budget forecast will not spare construction’s pain

There was a widespread view, stoked in part by the new incumbent at No 11 Downing Street, suggesting that the first output from the newly established Office for Budget Responsibility would most likely reveal the public sector debt to be far greater than we had been led to believe. Understandably this miffed the ex-Chancellor Alistair Darling who quite rightly was irritated at the suggestion he was a smoke and mirrors merchant. Well, now it would seem that if he had been…

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Buyers’ index once again suggests growth in construction, but for how long?

Buyers’ index once again suggests growth in construction, but for how long?

The latest construction index from the buyers’ body CIPS shows growth in construction in May sped up slightly. The overall activity index rose from 58.2 to 58.5. That suggests a respectable amount of growth (see graph) given that anything above 50 is growth. However while the figures are positive now there appears to be little appetite to consume hopes that growth will continue. As the chief executive officer of CIPS, David Noble, says: “Civil engineering is a clear case in…

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RICS shows construction emerging from recession, but is it really?

RICS shows construction emerging from recession, but is it really?

In the current climate it is encouraging to see construction indicators finally point to growth. And so it is good to welcome the return of the RICS construction workload index into positive territory after two years of slump. Sadly, as is the case with many construction indicators, when they are showing positive results it doesn’t necessarily mean that we are enjoying growth or that growth is coming to construction. So it is I suspect with the latest construction survey from…

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The problem with surprises on inflation

The problem with surprises on inflation

Could it be that we are about to witness the beginnings of widening concerns over rising inflation? The Consumer Prices Index “surprise” jump to 3.7% yesterday will certainly increase rumblings in the markets and elsewhere. Although for the time being I suspect  attention will be more focused on June 22 and George Osborne’s first budget, which could after all produce some pretty hefty downward pressure on inflation, if the output from the rumour mill has any value. However, if inflation does…

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Construction redundancies remain high while vacancies remain low

Construction redundancies remain high while vacancies remain low

As the real business of governing the UK begins to wind up again, the latest employment figures will do little to cheer the incoming government as it prepares to put chalk marks on where deep public sector cuts will be made. The overall figures showed the rise of unemployment continuing above the 2.5 million mark. But equally as worrying is the swelling number of part-time workers that is hiding a bubble of underemployment. Over the first quarter of this year…

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Buyers’ index suggests rapid growth in construction, how ironic

Buyers’ index suggests rapid growth in construction, how ironic

How ironic that just as the construction industry is sucking in its tummy and preparing for savage cuts the latest survey by the buyers’ body CIPS shows some of the strongest growth experienced over the past decade. As can be seen from graph on the right the current level of the index suggests a growth rate that would have been well received at most times in the period from 2000 to the credit crunch. The survey suggests that activity in the…

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It’s a double-dip recession for construction, if the statisticians’ first stab at growth is right

It’s a double-dip recession for construction, if the statisticians’ first stab at growth is right

Construction has fallen into a double-dip recession – that is if the preliminary estimates by the statisticians putting together the first quarter 2010 gross domestic product figures are to be believed. The preliminary GDP figures put growth at a pallid 0.2% for the economy as a whole. This low level of growth will be a huge worry for construction if the figure is not revised upward in later estimates. In fairness the chances of a revision upward in this data…

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Good news in the employment figures, but the future for construction jobs remains uncertain

Good news in the employment figures, but the future for construction jobs remains uncertain

The latest employment data will provide economists, politicians and strategists with plenty to chew on. The headline figure for unemployment jumped by 43,000 to top 2.5 million for the first time since 1996, the number of people in employment fell by 89,000 and the number wanting a job rose again. But there are certainly positive signs. The claimant count is down by 32,900 and the actual number of hours worked is on the rise. And one figure that probably won’t…

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