Turning point for UK construction? – RICS
The latest RICS construction market survey indicates a turning point for the UK construction market, with those surveyed predicting an increase in output this year. During the final quarter of 2012, 15% more surveyors reported expected increases in workloads over the next 12 months.
Workloads during Q4 grew slightly, with a net balance of 6% of respondents indicating more activity. The largest increases were in the infrastructure segment and private commercial development. By region, London and the South East and the North of England saw the largest rises in overall workloads, while activity in Northern Ireland and Scotland continued to fall “by a significant margins”, RICS said.
Financial constraints are still hampering activity levels, said 89% of those surveyed, with around two thirds of respondents citing insufficient demand. More than half of surveyors also said that weather conditions had held back recovery. In addition, 15% more respondents reported rises in input costs rather than falls.
RICS chief economist Simon Rubinsohn commented that the continuing intense competitive pressures in the sector had continued to erode profit margins. He said the government’s Funding for Lending scheme should gradually help to ease this challenge.
“After a truly dreadful year, if one believes the official data, there are signs that 2013 will bring some better news for the construction sector. Most notably, the numerous measures that the government has introduced with a focus on infrastructure appear to be bearing some fruit,” he added.
