The CPA (Construction Products Association) has released its latest forecast for the construction industry, they expect the construction industry to grow 23% by the end of 2018 and contribute £12 billion to the UK economy over the next two years; with construction output growing 4.8% in 2014 and 5.3% in 2015.
The CPA has also released its latest Construction Trade Survey, which shows that activity rose in Q3, making this the sixth consecutive rise, the first time this has happened in six and a half years. The survey also says that construction firms have reported rises in forward looking indicators such as orders and enquires, indicating that construction activity will continue to rise throughout 2015.
The Glenigan Index has reported an increase of 4% for November 2014 compared to November 2013, this is a slight increase from 3% in September 2014, making it the 17th consecutive monthly rise. Glenigan also report that project starts for office and retail sectors have seen a 25% year on year increase, which means that the commercial sector is now pushing the construction industry in the right direction for continued recovery and growth. However Deloitte have published the London Crane Survey, saying that London office space under construction has fallen to a three year low.
With reports of continued growth into 2015 and beyond the Markit/CIPS Construction Purchasing Managers Index in contrast shows construction output rising at its slowest rate in five months. The index reports a score of 61.4 in October 2014, which has fallen from 64.2 in September 2014, but still remains well above the neutral of 50.0 and much higher than the long-run survey average of 54.5.
The Nationwide House Price Index has reported a rise of 0.5% in house prices for October 2014, with annual house price growth falling to 9.0% in October from 9.4% in September 2014. The Halifax House Price Index has reported a fall of 0.4% in house prices for October 2014, showing the annual house price growth falling to 8.8% in October from 9.6% in September 2014.
A report by Pinsent Masons says China is set to invest over £100 billion in UK infrastructure by 2025. China will invest £43.5 billion in UK infrastructure by 2025, followed by £36 billion for real estate and £19 billion for transport. This investment is expected to be a welcome boost to the UK construction industry and the UK economy as a whole.
Source: Competitive Advantage Consultancy Ltd