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CPA survey confirms poor prospects for construction

The construction industry is expecting public sector cutbacks and private sector weakness to severely impact on output, according to latest Construction Trade Survey published today.

The survey finds that:

  • heavy side sales volumes rose for 56% of heavy side firms

  • 43% of contractors reported that, on balance, activity rose during the first quarter of 2011 compared with 2010 Q1

  • 77% of heavy side firms and 88% of light side firms stated that costs had risen over the past year

  • 71% of contractors reported that, on balance, materials costs rose in the first quarter of 2011 compared to the final quarter of 2010

    CPA economics director Noble Francis said: “This survey highlights that construction improved during the first quarter of the year, contrasting sharply with the ONS’s construction output figures that indicated construction fell 4% over the same period.

    “However, this improving situation is compared to the final quarter of last year, which was badly affected by poor weather in November and December. The industry’s near term future is likely to be extremely challenging with domestic demand remaining subdued, exacerbated by expectations of further rises in fuel, energy and materials costs.”

  • About Fiona Russell-Horne

    Fiona Russell-Horne
    Editor-in-Chief across the BMJ portfolio.

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