RICS survey indicates signs of recovery

Business in the construction industry may be on the up, according to the latest survey from the Royal Institution of Chartered Surveyors. During the second quarter of 2013, a net balance of 21% more surveyors reported rises in workloads, the most positive reading in over six years. Looking further ahead, 59% more respondents predict workloads continuing to rise over the next 12 months.

More work in the construction industry will also benefit the UK as a whole, with every £ spent on construction generating nearly £3 of wider economic growth.

There was also good news for profits and, consequentially, employments prospects in the construction sector — with both registering a positive net balance of 34% — the most optimistic indication for a number of years.

Simon Rubinsohn, RICS chief economist, commented: ‘It is clearly good news that the amount of construction taking place across the country seems to have turned a corner. But this modest improvement comes after a long period of contraction, and many businesses in the sector are still struggling to keep their heads above water.

‘Securing finance for development is still a big challenge. Despite the Government’s attempt to revamp the planning system, the feedback we are getting suggests that this issue also remains a major obstacle to getting projects under way.’




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