Barbour ABI report finds feeling of positive change
Future business prospects for the construction industry are creating a feeling of positive change, according to Barbour ABI’s lead economist Michael Dall. And his view is supported by the latest Markit/CIPS PMI Construction Index showing the strongest growth in output since June 2010, with the index for July of 57.0 being sharply up from 51.0 in June.
Looking ahead to orders, Barbour ABI’s figures show mixed fortunes for the various construction sectors.
The quarterly review figures for the industrial sector showed an upturn for the second quarter of 2013 of 9% compared with the first quarter and a 29% increase from the same quarter in 2012.
The education sector experienced a 25% increase in the second quarter compared to the previous quarter and a 22% increase over the corresponding quarter of 2012.
In the residential sector, the total value of projects awarded increased by 17% from the previous quarter — but was 9% below the corresponding quarter of 2012.
A slight contraction in the commercial and retail sector saw a 1% fall in the value of projects over the previous quarter and 3% on the corresponding quarter of 2012.
The medical and health sector continues to show sharp declines, with a 31% fall over the first quarter and 48% on the corresponding quarter of 2012.
Referring to other statistics and announcements, Mr Dall said, ‘With the IMF raising its forecast for economic growth in the UK from 0.7 to 0.9% and the Ernst & Young Item Club raising its forecast from 0.6 to 1.1%, the consensus is certainly moving into positive territory.
‘The announcements in the Government’s Infrastructure Statement, which committed up to £100 billion of funding for infrastructure from 2015, have the potential to make a major impact on the construction industry’s performance in the coming years.’
