UK’s Construction Industry continued to grow in Quarter 4
Private and public housing keys to construction growth in Q4
consecutive quarters of growth; this is what results from the latest Construction Trade Survey, which shows, also in Quarter 4, a growth in the construction activities.
Although building contractors, SMEs and civil engineers reported rises in output during the fourth quarter of 2014, the growth was lower than in the third quarter. Only product manufacturers saw activity levels rise more during the fourth quarter than in the previous quarter.
The Survey has also revealed that private and public housing were the key drivers of construction growth in Q4, with balances of 20% and 32% respectively.
According to Dr Noble Francis, Economics Director at the Construction
Products Association which represents the UK’s manufacturers and suppliers of
construction products, components and fittings, the rises in activity during Q4 were slower than during the previous two quarters especially within the housing sector, was partially offset by falls in repair and maintenance work.
Dr Noble also highlighted that, despite the improving demand over the past 12 months, most contractors reported a fall in profit margins due to increased labour, energy and transport costs.
Julia Evans, Chief Executive of the National Federation of Builders commented the fragility of the construction industry’s recovery driven by house building with these words: “Ongoing investment and future prospects point to further growth for the construction industry as a whole but as the economy recovers, it is important for companies to be at least as vigilant about costs, cash flow and late payment as they were during the downturn”.