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Tag: public spending

Time is running out for construction as private sector new orders run thin

Time is running out for construction as private sector new orders run thin

The latest new orders figures from ONS once digested will inevitably leave the construction industry feeling hungry and wondering where its next meal is coming from. Some will note the quarter-on-quarter rise of 0.2% and the 11.1% rise in the second quarter compared with the same time last year and foolishly suggest this represents improvement. They would be wrong. If you ignore the public sector data (which bounced up slightly in the quarter), the direction of orders was distinctly down quarter…

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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.

Forecasters see longer deeper double dip for construction

Forecasters see longer deeper double dip for construction

The latest batch of industry forecasts are emerging and they show construction locked in a deeper recession than previous expected. The recovery now looks further away. Top graph shows how the industry appears to be facing a pretty deep and protracted second recession.

Why the latest orders figures are so disturbing

Why the latest orders figures are so disturbing

The latest official data for new orders in construction could be read as good news. They show an up-tick of almost 5% in the first quarter of this year on the seasonally adjusted measure. That sounds promising on the face of it and many might claim that it is. But that would be to look at a small detail in a much bigger picture that looks far from promising.

Whatever the revisions to the official figures they point to a tough time for construction

Whatever the revisions to the official figures they point to a tough time for construction

The Office for National Statistics confirmed its preliminary estimate that construction was again in technical recession. Indeed its latest estimate is that construction fell further in the first quarter of this year, dropping by 4.8% rather than the 3% it estimated for the GDP figures released late last month. Not too much should be read into the revision. The scope for revisions up and down was great as the initial stab was based on limited data. It was also unclear…

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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…

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