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Tag: public spending

Orders figures support view that there is cause for concern in construction

Orders figures support view that there is cause for concern in construction

The main message in the construction new orders figures released by ONS this morning is that the slope is downward and this is points to further falls in output in the future. And, to put them in context, against peak levels in cash terms orders for new construction work are down about a third. But more worryingly we don’t appear to be seeing the kind of acceleration in the private sector we would need to compensate for the losses faced in public…

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The value of education to construction

The value of education to construction

Chatting to my good friend Martin Hewes about his latest regional forecasts he raised a point I had not really thought about that much before – the value of new orders for education work let over the past two years was twice the value for offices. In some regions the spending on education building makes the office sector look a bit like a side show. Great for those that specialise in educational building – well at least for the time being….

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Worrying new orders figures, despite 18% quarterly jump

Worrying new orders figures, despite 18% quarterly jump

You wouldn’t expect a sharp rise in new orders for construction to be a cause for concern – not in today’s work-starved economy. But that is just what we have. On the face of it the 18% jump quarter on quarter in the volume of work in the final three months of last year should be a reason to cheer. More work in the pipeline, yippee. And I suppose it is not unreasonable to see it that way. But sadly…

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Architectural and engineering firms see drop in turnover in 2010

Architectural and engineering firms see drop in turnover in 2010

The cash brought in by UK based architects and engineers last year dropped by a further 2%, according to the latest official figures on manufacturing and services turnover. This puts turnover down about 8% in cash terms since the peak of 2008. Sadly this data series does not split the work on the basis of domestically generated and overseas generated work. But data from the pink book does suggest that exports account for about 10% of turnover. Given that architectural…

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2010 saw fastest growth since the 1980s boom – but we are on the way down again

2010 saw fastest growth since the 1980s boom – but we are on the way down again

The impact of the economic stimulus on construction is clear when we look at the phenomenal growth the industry enjoyed in 2010. The latest set of construction output figures put volume growth for 2010 at about 6.2%, although the amount of cash pocketed by the industry rose by just 3.8% as a result of falling prices. In volume terms this represents the biggest annual jump in output recorded since the late 1980s boom. And by the time the statisticians at…

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Little cheer in public accounts or growth figures as construction prepare for the big squeeze of 2011

Little cheer in public accounts or growth figures as construction prepare for the big squeeze of 2011

Today’s release of the public sector finances will be a knock to the Chancellor George Osborne as they show borrowing up more than expected. Indeed at £23.3 billion (net of any financial interventions) in cash terms that is the most the UK has had to borrow in a month ever, at least as far as I could see. And tomorrow we will most likely see the official statistics for UK economic growth in the second quarter revised down – probably…

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Construction industry is forecast to face a second double-digit decline

Construction industry is forecast to face a second double-digit decline

Construction is heading for a very nasty tumble next year after the current spurt in workload fades. That at least is the assessment of the first major industry forecast released since the Chancellor’s spending review announcements. The construction forecast by Hewes & Associates suggests that after an unexpected 5.6% rise in construction over this year as a whole, the industry will slide sharply by 5.8% next year and 4.8% in 2012. It is worth noting that the forecast by Hewes…

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£10 billion less public cash for capital spending in second half of this financial year

£10 billion less public cash for capital spending in second half of this financial year

Just to get you in the mood for the savageness of the cuts to be announced later today here is an observation on today’s release on public sector finances. In the first six months of this financial year net investment, that is the envelope within which public sponsored construction broadly falls, has only dropped slightly on spending in last financial year. That means we haven’t felt any real shock yet. But if the Government is to stick to its spending…

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What house price falls might mean for future housing construction

What house price falls might mean for future housing construction

The Halifax index out today will provide a nasty kick in the stomach for those businesses reliant on stable or rising house prices to prosper. The monthly fall of 3.6% was the biggest I could find on the historic data spreadsheet that Lloyds Banking Group provides that goes back to the start of 1983. The previous worst monthly fall was 3.0% in September 1992. And however much we are advised to look at the quarterly figure and how ever much…

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A break in the clouds for construction’s smaller firms

A break in the clouds for construction’s smaller firms

For those looking for reasons to believe that the second quarter of this year provided some relative cheer, it may be worth taking in the surveys from the FMB, which represents local builders, and the NSCC, which represents specialists. We may not be talking about boom times, but both surveys reported a marked easing in the recessionary pressures that have dogged the smaller firms in construction for more than two years. You have to read through the data to get a…

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