Materials chiefs play down positive survey results

Grant Prior 16 years ago
Share

Sales of construction materials jumped again during the second quarter of this year.

But materials suppliers who compile the figures are denying the numbers signal a sustained recovery is underway in the industry.

The latest Mineral Products Association survey shows that aggregates, cement, ready mixed concrete and asphalt sales volumes all improved in the second quarter of 2010 compared both with the same period of 2009 and the first quarter of 2010.

Asphalt sales were 10% higher than in the second quarter of 2009 due to emergency repairs and the progress of some major road contracts.

The rise in aggregate sales reflected the increase in road sector activity, but also the more general improvement in ready mixed concrete sales – public sector construction has continued to grow in the first half of 2010 and there has been a modest increase in housing starts.

The MPA figures reflect the construction growth evident in Government’s recent estimates of economic growth in the second quarter.

This data indicated surprisingly high 1.1% GDP growth in the second quarter, the main driver of which was a 6.6% increase in construction activity compared with the first quarter, and a 5.8% improvement since the second half of 2009.

But Simon van der Byl, MPA Executive Director, warned: “In spite of these welcome improvements there are, however, no indications of sustained growth in either the mineral products or construction sectors.

“High levels of mainly public sector investment in health, education and infrastructure have boosted construction investment in recent months but Government has announced very significant reductions in investment which will significantly reduce associated construction activity as existing projects are completed and not replaced.

“There is little likelihood of any significant improvement in private sector construction work over the next eighteen months therefore the recent improvements in mineral products and construction markets will be short-lived.

“If Government does cut construction investment to the extent currently predicted, construction output will flip from being the generator of economic growth highlighted in the second quarter GDP figures to being a drag and constraint on economic growth in 2011, 2012 and 2013.

“Considering the new planning uncertainties afflicting the housing market, continuing doubts about Crossrail, the questions over the funding and timing of new energy infrastructure and the axe hanging over road maintenance and construction work it is difficult to see where overall market recovery will come from.”

Latest news

Investment giant acquires Phoenix ME

Deal set to accelerate growth strategy at M&E specialist
6 hours ago

VINCI UK profit jumps 51% after group overhaul

Highways, civils and FM Conway acquisition lift earnings as turnover approaches £3bn
9 hours ago

Clancy Consulting administration move sheds historic liabilities

70 jobs safeguarded as core civil and structural engineering business survives
10 hours ago

Multiplex gets start date for City Road 36-storey tower

Main construction to get underway this quarter
1 day ago

Bellway beats build target despite weaker buyer demand

CEO calls for Stamp Duty cuts and first-time buyer help to revive housing market
9 hours ago

Trade credit insurer could cut cover for Vistry suppliers

Allianz Trade reportedly reduces credit limits as house builder battles to cut £470m net debt
1 day ago

Bricklayer breaks back after falling through roof

Contractor fined £20,000 for safety failures
10 hours ago

M&E specialist ACES files administration notice

Avon Combined Electrical Services expanded into the capital last year to win larger jobs
1 day ago

Portsmouth picks ECF for 2,300-home city centre regeneration

Council finally advances ambitious City Centre North regen plan
1 day ago

Newcastle office block plan unveiled

12-storey scheme to be latest addition to One Founders Place
1 day ago

Eric Wright to start £65m Tebay-style M56 services

Yates starts groundworks on Cheshire motorway services
1 day ago

Plans in for retrofit of London Charing Cross office icon

Major retrofit plan keeps 90% of iconic 1990s office building
2 days ago

Higgins lands Brentford estate revamp

Construction to start this autumn on 182-home scheme
1 day ago

Kier bags biggest sewage treatment job yet

Firm signs ECI deal on £265m Thames Water AMP8 treatment works upgrade
4 days ago

Plan in for 53-storey Birmingham build to rent tower

42 High Street tower near the Bullring could be Birmingham's tallest building
4 days ago

HG seals hat-trick of Gateway 2 project approvals

Bristol, Manchester and London schemes will deliver 664 homes and student beds
4 days ago

Farrans to build new Stansted skylink walkways

Sections to be built "offsite" in vacant airport hangar
5 days ago

Ceiling specialist Zentia went down owing suppliers £5.6m

Unsecured creditors left holding worthless invoices
4 days ago

Mears secures £4.2bn pipeline after contract winning spree

Housing upkeep giant lands £1.4bn of work as Birmingham deal leads bumper order book
5 days ago

Construction buyers see first signs of a turnaround

July data shows construction market starting to stabilise
5 days ago

£90m bid race for iconic Foster museum revamp

UAE's Sainsbury Centre museum to get new envelope and low-carbon building services
5 days ago

Persimmon sharpens axe on costs as inflation threat grows

Builder targets procurement savings as inflation clouds outlook
5 days ago

Multiplex tops contracts league with £400m office job

July order haul among Top 50 contractors edges up 3.5% in July
5 days ago

Forshaw Demolition goes into administration

Bolton based specialist worked on packages up to £2m across the country
5 days ago

Panattoni submits plans for 1m sq ft Kent scheme

70-acre site to become major industrial and logistics scheme
5 days ago

Public work bidders face 20% jobs and skills hurdle

Firms chasing government work face tougher job creation and pay scoring from January
5 days ago

Orbit unveils £1.4bn long-term housing works pipeline

Bid race for five regional lots covering planned maintenance, remediation and major projects
6 days ago

Yorkshire Water sounds out market for £3bn AMP9/10 plan

Early market engagement begins for decade long £330m a year programme
6 days ago

Ibstock makes £27m loss as brick demand dives

Mothballed plants lead to large impairment charges
6 days ago

Gatwick second runway cleared after court challenge fails

Final legal challenge dismissed as £2.2bn build moves towards site start
7 days ago