The Construction Products Association published its latest Construction Trade Survey for Q2 2015. The survey shows that most firms across construction reported growth for Q2 2015, making this the 9th consecutive quarter of growth for the construction industry. However contractors did not have it so good, with one in four reporting falling profit margins.
Complementing the continuing growth of construction, Timetric have published their report, Construction in the UK – Key Trends and Opportunities to 2019. The report indicates that construction is expected to perform strongly over the period of 2015 -2019, with an average annual expansion rate of 4.19%, marking an improvement from the annual average expansion rate of 0.45% recorded during 2010-2014.
However the Markit/CIPS UK construction PMI for July 2015 shows a slowdown in construction output growth. The index registered 57.1 in July 2015, which is slightly lower that June’s four-month high of 58.1. This drop in the PMI is greatly influenced by the loss of momentum in residential new-build activity, with the housing upturn being at its slowest since June 2013.
UK Construction PMI - July: 57.1housing market bulletin for July 2015. The bulletin states that although house prices remain strong, they are increasing at a slower rate than the same time last year. The bulletin shows that residential property transactions in England for June 2015 were 6.0% higher than in June 2014.
The Nationwide House Price Index reports that in July 2015 house prices increased by 0.4%, with annual house price growth increasing very slightly to 3.5% from 3.3% in June 2015. However the Halifax House Price Index reports that in July 2015 prices decreased by 0.6%, yet home sales increased by 5.0% between May and June 2015. This has ensured that confidence in house price growth remains higher than at the start of the year.
The ONS have released The English Housing Survey; a profile of England’s housing stock for 2013. The key point of the report shows that the total number of dwellings in England increased from 20.3m in 1996 to 22.3m in 2013, due to a growth in private rented housing. The report also shows that the number of council houses in England fell from 3.6m in 1996 to 1.7m in 2013.
Also released by the ONS is the Housing Summary Measures Analysis, which presents analysis of 15 housing summary measures, forming part of the new ONS Housing Statistics Portal. The report provides a broad overview of the availability and affordability of privately owned and social housing in England and Wales, along with a view on the affordability of private rented housing.
Contractor Osbourne has posted its financial results for 2014/2015, which shows a 12% increase in pre-tax profit, increasing to £5.8m in 2015 from £5.2m in 2014. Also their secured order book for 12 months from April 2015 has risen by 22% compared to 2014.
Source: Competitive Advantage Consultancy Ltd