The ONS has released its Output in the Construction Industry figures for December and Q4 2013. These figures show that construction output in the final quarter of last year was up 0.2% when compared with Q3 2013. Output in December 2013 is also 2.0% higher than the previous month.

With UK construction output showing growth, it has been predicted by Euro-Construct that overall construction output in Europe will grow in the period 2014 to 2016, following two years of contraction in 2012 & 2013. The growth will be moderate in 2014 with a forecasted increase of 0.9%, and more substantial increases of 1.8% in 2015 and 2.2% in 2016.

Markit/CIPS released their PMI data for February 2014. The Construction Managers Purchasing Index for February shows a slight fall since January 2014 from 64.6 to 62.6, but still remaining above the neutral value of 50.0. Survey respondents suggest that this slight drop is related to disruptions due to adverse weather conditions in February.

The Nationwide House Price Index reported that house prices increased by 0.6% in February 2014, and are 9.4% higher when compared to February 2013. This also shows that house prices are now 3% below the peak of 2007. The Halifax House Price Index reported that house prices in the 3 months to February 2014 were 2.1% higher than in the preceding 3 months to November 2013. They have also reported that house prices increased by 2.4% in February 2014, making this the eleventh monthly increase in the last year.

Riding on the recovery in the housing market, two large house builders have released financial results for the year up to 31 December 2013 boasting large increases in profit. Firstly Bovis Homes have reported an increase of 31% in revenue and 48% in pre-tax profit. Next Persimmon have reported an increase of 21% in revenue and 49% in pre-tax profit. Galliford Try have also released their half year financial results for the 6 months to 31 December 2013, these results show that both their revenue and pre-tax profit increased by 18% in these 6 months.

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