Positive signs for construction sector
ACTIVITY levels in the West Midlands construction sector edged upwards in the first three months of the year, according to the latest RICS Construction Market Survey.
Some 4% 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.
And predictions for future construction activity in the region saw a marked improvement in the first quarter of the year. Some 22% more respondents expect workloads to rise over the coming 12 months, the most positive reading since the third quarter of 2009. This is also being reflected in a modest improvement in expectations for employment in the sector, even though profit margins are viewed as likely to remain under pressure.
Alan Carter, RICS spokesperson for the West Midlands, said: “We are confident that, despite the headline news that we are officially in recession again, the activity in the market would suggest that the trend for the year would be growth.”
Most parts of the country saw either a rise or a steadier trend in workloads over the quarter. Surveyors in London and the South East reported the highest rises in overall activity, while those in the North recorded the first positive reading since the final quarter of 2007.
Perhaps unsurprisingly, the survey also revealed that overall input costs – such as raw materials and labour – continued to increase in the three months to March as a net balance of 25% more respondents reported rises in outlays.
