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Tag: optimism

Boom time for construction? The view from Eeyore’s house

Boom time for construction? The view from Eeyore’s house

I feel for pessimists in construction at the moment. It’s really tough times for doom mongers. Every survey is running high, some touting record-breaking numbers. Meanwhile, forecasters are suggesting we are on the threshold of a phase of growth well above the long-term average. My God. It’s boom time. How can you talk that down? Well okay let me have a go. Not because I’m a pessimist (despite the rumours). Things are looking better. And I take a simple view…

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The cost to construction of false optimism

The cost to construction of false optimism

For the past five years this blog has been perceived as a purveyor of doom and gloom and sometimes criticised for being so. I part jokingly retort that I may be gloomy, but I tend to be out-gloomed by reality. Here’s my take in 2008. There is plenty of scope I see now to have been gloomier than I was and not have been unreasonable as things have panned out. But this post does not concern who was right or…

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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…

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Why is confidence rising in the construction industry when it appears set for recession?

Why is confidence rising in the construction industry when it appears set for recession?

I have noted from conversations I have had recently a more confident air about the future within construction this side of the New Year. And the latest Markit/CIPS survey seems to add to this anecdotal evidence with its finding that confidence in the sector in January improved “to the second-strongest degree in the survey history to reach the highest since May 2011”. I’m not sure what that actually means in numbers but it sounds like a lot of improvement.

The Markit/CIPS survey provides cheer for construction – but take it with a pinch of salt

The Markit/CIPS survey provides cheer for construction – but take it with a pinch of salt

Taking the latest monthly construction survey from the buyers’ body CIPS at face value we could be tempted into thinking all is looking well set for the year. The overall index bounced sharply back from 49.1 to 53.7 – that means from below the 50 no change mark to a figure that suggests reasonably sound growth. And, says the survey release, there was not just a boost to work done but a rise in new business. More encouragingly optimism among…

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Growth eludes construction as economy grows –that’s how CIPS sees it

Growth eludes construction as economy grows –that’s how CIPS sees it

The latest set of figures from the buyers’ body CIPS shows that construction remains mired in recession and the general pattern painted by the numbers provides little scope for optimism. The level of incoming orders fell for the third month in a row, says the report. And this will be from a low base. It all rather poses the question: where to from here? It is perhaps ironic, given the figures, that the survey shows expectations for activity over the next…

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CIPS figures show construction activity in 2009 ending with a whimper

CIPS figures show construction activity in 2009 ending with a whimper

The buyers’ body CIPS has released its first construction statistics of the New Year and they show the industry continuing to decline in December. The construction index finished the year on 47.1, below the 50 no-change mark for the 22nd consecutive month. But there was some good news. The housing index remained positive for the fourth month running and growth appears to be strengthening. Meanwhile optimism among purchasing managers about future activity rose slightly. But as the graph shows the…

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