The ONS has released its latest construction output figures for September and Quarter 3 2013. These show a steady growth in construction output over the previous two quarters of 2013, with a 1.9% rise in Q2 and a 1.7% rise in Q3, the highest Q3 rise since 2003. The CPA has also published their latest Construction Trade Survey. This reports growth from firms across all sectors in the industry and with two consecutive quarters of growth suggests sustained recovery for construction at last.
To reinforce all of this good news, The Purchasing Managers Index has recorded a value of 59.4 in October which is a rise from 58.9 in September; this is the highest figure recorded since September 2007. Also The CBI has revised its GDP growth forecast upwards from 1.4% in August 2013 to 2.4% in 2014, and 2.6% growth in 2015. Similar positive news comes from the Q3 RICS Construction Market Survey which shows a more widespread increase in workloads than at any time since Q2 2004. A net balance of 31% of respondents witnessed rising workloads with all of the regions of the UK seeing activity increase in all sub-sectors, both public and private.
The Nationwide House Price Index reported a 1% increase in October 2013, 5.8% higher than October 2012, bringing house prices to just 7% lower than their peak in 2007. The Halifax House Price Index has reported a 0.7% increase in October 2013, making this the ninth consecutive monthly rise in house prices. The predicted housing price bubble was reported in the BBC Panorama programme broadcast on Monday night.
With this continuing recovery of the housing market Persimmon Homes have released an Interim Management Statement saying that the Buy equity loan scheme, launched in April 2013, has helped them to sell 3,000 new homes. They also say that they have £650 million of forward sales beyond 2013 which is up 41% on last year. The Deloitte Real Estate UK Cities Crane Survey 2013 shows that this recovery is across five major cities (Birmingham, Manchester, Leeds, Edinburgh and Glasgow) and not just in residential. The commercial office market is described as on the cusp of a new development cycle.