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Tag: Construction Products Association

Output falls as construction faces worrying time over jobs in 2013

Output falls as construction faces worrying time over jobs in 2013

The latest Office for National Statistics construction output figures fit the pattern of an industry is sharp decline. There was a brief pause for optimism last month as the October data provided a lift. But I cautioned last month about reading too much into one month’s data and, as Noble Francis at the Construction Products Associate suggests, this rise may well have been down to a delayed post-Olympic surge. Such a delayed impact is understandable, as there are lags in the output…

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Some lessons to learn from the constant downward revisions to construction forecasts

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.

Output data suggest it’s past time for the Government to act decisively to boost construction

Output data suggest it’s past time for the Government to act decisively to boost construction

There will be some people expelling phews of relief at seeing construction output for the second quarter revised up by the Office for National Statistics from a dramatic drop of 5.2% to a less frightful fall of 3.9%. Certainly this will have the effect, all other things being equal, of lifting the rather shocking GDP drop of 0.7% by 0.1% or so. Not much, but a little.

Construction industry forecasters are of one mind: It’s worse than we thought

Construction industry forecasters are of one mind: It’s worse than we thought

The consensus among UK’s top construction forecasters is that things are worse than we thought. A week ago we saw Experian and Leading Edge downgrade their forecasts for construction growth. This week we see the Construction Products Association do the same and Hewes & Associates will follow suit when it is published shortly.

What if ONS reports a construction collapse tomorrow?

What if ONS reports a construction collapse tomorrow?

Tomorrow we get the first hint of how construction might perform this year when the Gross Domestic Product preliminary estimate figures for the first quarter are released. Looking at the initial data on construction output for this year, I suggest everyone should be prepared for a nasty number to emerge within the data for construction’s contribution. But while I think it likely, that doesn’t mean it will. There are things we don’t know. What will early returns for March show?…

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Why calling for housing QE is not special pleading: Part 2

Why calling for housing QE is not special pleading: Part 2

If growing calls to use quantitative easing to directly stimulate weaker parts of the economy lead to a change in approach by the Bank of England it would leave a tricky question. That’s the question Sir Mervyn King, the Bank’s Governor, threw back at Treasury Committee member Andy Love last week. He asked: “Can you give me an example of the asset you think we should be purchasing. I asked the previous Chancellor and got no reply.” Mr Love gave…

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Why calling for housing QE is not special pleading: Part 1

Why calling for housing QE is not special pleading: Part 1

Over recent months there’s been a growing mood to exploit the power of quantitative easing to accelerate growth in key parts of the UK economy and for the Bank of England to buy other assets other than Gilts – UK Government bonds. Here in Part 1 I’ll be looking at the background to these calls and, in Part 2, I’ll look at why, if we are to experiment further with QE, we should look to housing as the alternative to Gilts…

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Why Construction Products Association is right to push quantitative easing for house building

Why Construction Products Association is right to push quantitative easing for house building

The Construction Products Association has called on the Chancellor to pave the way so that quantitative easing can be exploited to fund house building. And there seems to be growing backing within the construction sector and without for using the quantitative easing machine as means to increase the number of homes being built.