New construction orders stabilise

Aaron Morby 10 years ago
Share

Government got a timely boost for its construction plans this morning as official orders figures showed the industry has stabilised.

Orders for the second quarter rose 0.2% helped by an unexpected rise in spending on schools and private housing.

But orders are running at around 40% below peak in 2007.

The latest figures were 11% up on the same time a year ago, although this growth is exaggerated by an unusually sharp fall during the same period last year.

Simon Rawlinson, head of strategic research at EC Harris said: “Today’s new orders figures for the Q2 show virtually no change from Q1 and will soothe some frayed nerves in the Treasury and the wider industry.

“These figures are from the same three months during which output was recorded as falling by 5.2%.

“This suggests that the forward pipeline of work is stabilising, in line with industry forecasts for a shallow downturn in 2013”.

He said that the figures suggested greater stability in activity levels moving into 2013, but warned the industry was by no means out of the woods with public sector activity expected to fall.

Private housing orders increased by 10%  recovering to typical levels seen last year.  Public sector orders showed a 30% increase on the quarter to the highest volume since the start of last year.

But the dour performance of the commercial sector, including PFI still raises a cause for concern in the industry.

Rawlinson added: “The data could have been a lot worse, but does not yet point to growth.”

But Brian Green, industry economic commentator, said: “The real problem with the orders figures is that they are stabilising at levels we saw in the bleaker part of the 1980s.

He added: “If you look at the private sector there is no sign of any great vibrancy”

Steve McGuckin, UK managing director of the programme management consultancy Turner & Townsend, said: “The headline number is positive, but the good news is thin.

“Private sector and infrastructure construction provide a much better barometer of the nation’s economic health. And the outlook there is challenging.

He added: “The increase in new orders has to be welcome, but the fact that the growth is primarily coming from the public sector means it may not last.”

 

Latest news

McLaren tops November contracts league

Excel exhibition centre £200m phase 3 wins lifts McLaren to pole position for contract wins last month
45 mins ago

Former Wates CEO joins Mace as new financial chief

David Allen replaces Richard Bienfait who stepped down in September
34 mins ago

M25 to go green under new Shell and Balfour deal

New trial of paving on UK's busiest motorway
1 hour ago

Bidders wanted for £125m painting and decorating framework

Apply now for latest Fusion21 deal
19 mins ago

Robertson wins first MIM-funded Welsh school job

£65m Flintshire school campus project first to use Welsh mutual investment model
2 hours ago

Willmott Dixon wins £130m Broadwater Farm estate revamp

Green light for north London estate transformation
1 hour ago

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
2 days ago

West Yorkshire transport projects delayed to save £270m

Over 30 transport schemes to be placed on hold due to cost inflation budget pressure
1 day ago

Decision on A1 Costain dualling job delayed for third time

Development consent decision for £260m Northumberland scheme put back a further 9 months
1 day ago

Colas wins £140m Cheshire highways upkeep deal

Incumbent contractor Ringway will handover to Colas in April
1 day ago

Skanska to lend staff cash

Contractor links-up with finance firm to offer affordable loans to employees
1 day ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
2 days ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
2 days ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
2 days ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
2 days ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
2 days ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
2 days ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
2 days ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
3 days ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
2 days ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
3 days ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
2 days ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
3 days ago

350-homes approved around iconic London Tube station

Housing blocks to be built around Grade II-listed Hounslow West Tube station
3 days ago

Domis set for £195m Boddingtons Brewery scheme

Developer Salboy buys Manchester site to kickstart long-awaited 556 homes project
3 days ago

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
4 days ago

Esh launches new housing retrofit division

Esh Retrofit Solutions will target market to improve the energy performance of social rented homes
3 days ago

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
6 days ago

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
6 days ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
6 days ago

Contractor services