Construction market shows signs of improvement
ACTIVITY levels in the region’s construction sector edged upwards in the first three months of the year, according to the latest RICS Construction Market Survey (10 May 2012).
One percent more chartered surveyors across the region reported increases rather than decreases in workloads. This is a notable improvement of the negative reading seen towards the end of 2011, where those reporting decreases in workloads outweighed the number reporting increases by 18%.
More significantly, predictions for future construction activity across the region saw a marked improvement in the first quarter. Some 9% more surveyors were predicting further upturns in order books in the next 12 months, which is the most positive number since 2009.
Moreover, although costs are continuing to increase and margins remain under pressure, more firms in the sector said they were likely to increase employment over the next year.
RICS construction spokesman Steve Gillingham of contractors Mace said: “The start of the year saw a cautious level of optimism develop across the construction industry. Workloads increased across some sectors in the region, albeit modestly, and this looks as though it could continue over the next 12 months.”
RICS chief economist Simon Rubinsohn added: “There are, of course, still significant hurdles to overcome.
“Finance for development remains a problem, as does macro-economic uncertainty. On top of this, the public sector will continue to scale back its capital spending programme, putting ever more pressure on the private sector and institutional investors to deliver.”
