Construction orders increase in Q2
The UK's construction sector is continuing its improvement after figures for the second quarter showed that there was an increase in orders.
Statistics showed that there was a 20 per cent rise in the overall order book of companies across the country. One of the driving forces behind these positive figures was the housing sector, which experienced a boost in output over the course of July. The Office for National Statistics (ONS) showed that the building activity grew by 2.2 per cent between June and July and further recovery could be seen in the near future.
Officials are more optimistic about the year ahead as there is currently 33 per cent more new orders in the April-June period compared with this time last year. The recovery is also the biggest rise since record began in 2005. Chancellor George Osborne hailed the figures claiming that the construction sector, which accounts for six per cent of national output, is helping the economy "turn a corner".
Speaking to Construction Enquirer, Steve Rawlinson, head of strategic research and insight at EC Harris, echoed the sentiments of the chancellor adding:
“Growth at this rate has not been seen since 2009 when special measures were put in place to stimulate the economy. Other industry indicators such as the Markit PMI have been accelerating during the summer, suggesting that third quarter volumes could be even higher."
The Construction Products Association (CPA) recently predicted a rebound for the industry with experts predicting a 2.2 per cent growth to swing it back into recovery. The likes of Taylor Wimpey and Costain have been instrumental in this activity, with both companies experiencing an upturn in fortunes.
The housebuilder has previously announced a 40 per cent rise in profits, while Costain recorded a 20 per cent increase in orders. It all bodes well for the construction sector going into the coming year.
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Date: 17/09/2013 16:46:00
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