The ONS has released its construction output figures for August 2013. These show that when compared to July 2013, construction output decreased by 0.1% in August 2013. They also show that compared to the previous year output increased by 4.0%. The Construction Products Association’s latest State of The Trade survey indicates that the sales of construction products continued to grow during Q3 2013, with the growth mainly being led by private housing and Infrastructure.
With the housing market still leading the construction industry’s recovery, the ONS house price index shows that UK average house prices increased by 3.8% over the year to August 2013, up from an increase of 3.3% in the year to July 2013. This increase has continued since April 2012 and is the highest year-on-year change since October 2010. Private and public housing new orders significantly increased between Q1 2013 and Q2 2013, predominantly driven by housing new orders in and around London. With the housing market picking up, Galliford Try are reporting record results with a pre-tax profit increase of 17%.
Looking forward, there are further signs of recovery as RIBA release the results of their latest Future Trends Survey. The survey shows that all regions of the UK gave positive workload forecast figures, with the south of England and Scotland being the most optimistic. The most positive about the prospect of improved workloads in the next quarter are medium sized architects practices.
Finally, KPMG have published their Annual Global Construction Survey. This shows that Australia, the UK and the Middle East are the least hopeful, but there is increasing confidence amongst UK construction firms. Internationally the main opportunities are seen as infrastructure, energy and power. Top priority for companies is recruiting key personnel with industry experience.