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Industry output up by 2 per cent says survey
00:00 09 Sep 1998
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by Michael Gordon The latest figures Department of Environment,
Transport and the Regions (DETR) show a rise of 2 per cent in the
total volume of construction output in the first half of 1998,
compared to the previous six months.
According to the DETR, this increase is due to both a small rise in repair and maintenance and strong growth in the private industrial, private commercial, private housing and public non-housing sectors.
The current level of all new work, although below that of the fourth quarter of 1997, still suggests a picture of underlying growth in the industry as a whole.
However, housing repair and maintenance work in the public sector was 10 per cent lower compared with the previous quarter, and 13 per cent lower compared with the same period last year.
In contrast, housing repair and maintenance work in the private sector rose by 8 per cent on the previous quarter and 13 per cent on 1997. The total volume of repair and maintenance work fell by 2 per cent on the last quarter but was 1 per cent higher than 1997.
The total volume of new work in the second quarter of 1998 was 4 per cent lower compared with the previous quarter, but 1 per cent higher compared with 1997.
The private sector prospered in the housing market with a 9 per cent rise on 1997 levels, whereas new work in the public housing sector fell by 12 per cent on the last quarter and 16 per cent on 1997.
These trends are reflected in the Royal Institution of Chartered Surveyors' (RICS) Housing Market Survey, which claims that the drop in house prices and a fall in the number of sales is indicative of the summer housing market.
A net balance of only 16.4 per cent of chartered surveyors reported a rise in prices for July, which is 12.9 points lower than June, and the weakest position in over two years, with those reported falls in house prices rising to 7.1 per cent.
A spokesman for RICS, said: "In the short term the Bank of England's commitment to bring down underlying inflation by maintaining interest rates at current levels will almost certainly slow housing market activity."
According to the DETR, this increase is due to both a small rise in repair and maintenance and strong growth in the private industrial, private commercial, private housing and public non-housing sectors.
The current level of all new work, although below that of the fourth quarter of 1997, still suggests a picture of underlying growth in the industry as a whole.
However, housing repair and maintenance work in the public sector was 10 per cent lower compared with the previous quarter, and 13 per cent lower compared with the same period last year.
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In contrast, housing repair and maintenance work in the private sector rose by 8 per cent on the previous quarter and 13 per cent on 1997. The total volume of repair and maintenance work fell by 2 per cent on the last quarter but was 1 per cent higher than 1997.
The total volume of new work in the second quarter of 1998 was 4 per cent lower compared with the previous quarter, but 1 per cent higher compared with 1997.
The private sector prospered in the housing market with a 9 per cent rise on 1997 levels, whereas new work in the public housing sector fell by 12 per cent on the last quarter and 16 per cent on 1997.
These trends are reflected in the Royal Institution of Chartered Surveyors' (RICS) Housing Market Survey, which claims that the drop in house prices and a fall in the number of sales is indicative of the summer housing market.
A net balance of only 16.4 per cent of chartered surveyors reported a rise in prices for July, which is 12.9 points lower than June, and the weakest position in over two years, with those reported falls in house prices rising to 7.1 per cent.
A spokesman for RICS, said: "In the short term the Bank of England's commitment to bring down underlying inflation by maintaining interest rates at current levels will almost certainly slow housing market activity."
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