Browsed by
Tag: infrastructure

The solution is construction, but the answer is not just any old construction – Part 2

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…

Read More Read More

The latest construction forecasts may be more optimistic, but the risks haven’t gone away

The latest construction forecasts may be more optimistic, but the risks haven’t gone away

For those who like their news good, the story in the latest construction industry forecasts is that the mood is less pessimistic than it was three months ago. The two forecasts out so far in this spring round – Experian and Hewes & Associates – both tweaked their figures upwards for output over the next three years. Looking at this year, Experian revised its forecast from -5.6% to -4.4%, while Hewes saw a case to reduce the fall from -6.5%…

Read More Read More

The trouble with handing roads to private firms

The trouble with handing roads to private firms

The Government is looking hard at injecting private capital into supporting the under–strain roads network. That certainly was one of the key messages that came out of Prime Minister David Cameron’s speech at the Institution of Civil Engineers today. This and the tone of the speech tell us a few things about current Government thinking and also raise speculation about other aspects of its approach. Firstly, the green agenda is shifting. Until recently the preferred politics had been to lean…

Read More Read More

A tale of two indicators – what to make of the latest construction PMI and orders figures

A tale of two indicators – what to make of the latest construction PMI and orders figures

When construction indicators point in different directions what are we to make of it? The February Markit/CIPS purchasing managers’ index released today is very bullish, suggesting the best growth for 14 months and the best month for new business for 21 months. Meanwhile, the official ONS construction new orders figures for the final quarter of last year were very downbeat. They showed a gloomier picture, with orders down on the previous quarter by 2.5%, down 15.4% on a year earlier….

Read More Read More

Plant hire firms continue to rebuild prices

Plant hire firms continue to rebuild prices

Plant hire firms continued on their journey of rebuilding prices throughout last year with the latest figures from the services producer prices series showing another upward tick. Prices in the final quarter of 2011 were up about 3% on a year ago. Against consumer price inflation, currently running at 3.6%, and in the face of upward pressure on costs, this hardly suggests times have got easy for the sector. But with activity recently on the up, see graph, and with firms…

Read More Read More

Latest construction data underline tough challenge for the industry in 2012

Latest construction data underline tough challenge for the industry in 2012

The latest official statistics show construction output fell by 0.5% in the final quarter of last year. That is in line with the statisticians’ estimate put out with last month’s GDP data. This fall fits with the raft of other industry data that has shown construction work falling. And it also fits with industry forecasts that construction is set to dive into recession again for the best part a couple of years.

2012 will be a stinker for construction say forecasters

2012 will be a stinker for construction say forecasters

Construction industry forecasters are now expecting a drop in output next year of at least 5%. To put that fall in context, there have only been six worse years recorded since the data series began in 1955. And some might see the latest forecasts as potentially optimistic as they assume the Eurozone manages to muddle through its deepening crisis.

Can George fill the funding gap for construction? The short answer is no and the long answer is no.

Can George fill the funding gap for construction? The short answer is no and the long answer is no.

How much will today’s announcements by the Chancellor George Osborne really change the picture for construction? Will the promise of jam today, tomorrow and for every day in this Parliament really amount to a hill of beans? Well no. But if you want to carry on to find out why not, here we go. I’ll start by trying to get a handle on what the funding gap might be for construction. In fairness its all a bit hypothetical and rests…

Read More Read More

Reasons to be cheerful as the official construction figures show output dropping

Reasons to be cheerful as the official construction figures show output dropping

The latest official data seem to provide yet more evidence of the decline in construction output, although the picture may not be as bleak – yet – as the published figures suggest if taken at face value. You shouldn’t really read too much into one month’s figures anyway in an industry that can be highly volatile and that is going through a particularly volatile phase. But people will and I am obliged to do it for a living. That said…

Read More Read More