The ONS have released their Output in the Construction Industry figures for September and Q3 2014. These figures show that in September 2014, output was estimated to have increased by 1.8% compared with August 2014, following a fall of 3.0% in August. The ONS also report that this was the sixth consecutive period of annual quarter-on-quarter growth for the construction industry.
Glenigan have published the Construction KPI report for 2014, showing how the economic downturn has impacted upon the performance of the construction industry, and highlighting the challenges that the industry faces in the near future.
The Nationwide House Price Index reports that in November 2014 house prices rose by 0.3%, with annual house price growth slowing to 8.5%. Also The Halifax House Price Index reports that in November 2014 house prices showed an increase of 0.4%, and that in October 2014 house sales fell below 100,000 for the first time in 2014.
With the housing market showing a slowdown in growth, major player Berkeley certainly are not, as they release their interim results to 31st October 2014, showing a pre-tax profit increase of 79.9%.
The Market/CIPS Construction Purchasing Managers Index reached a 13 month low in November 2014, as it reported a fall to 59.4 from 61.4 in October 2014. Making this the slowest expansion of construction output since October 2013.
Although reported growth in the industry is beginning to slow down, Arch- Vision report that the sentiment within architectural firms is positive in Q3 2014 with 43% of architects experiencing an increase in their order book. They also issue a warning not to be “too euphoric” predicting modest growth in 2015 (+3%) and 2016 (+2%).
While recovery is still at the forefront of the mind, Michael Dall of Barbour ABI interviews Economics Director, Noble Francis from the Construction Products Association, about the industry’s recovery with a closer look at the 3 top performing sectors; New house building, commercial and Infrastructure.