Construction in overdrive, says RICS

The second quarter of the year saw construction go into overdrive, according to the Royal Institution of Chartered Surveyors (RICS).

A survey of RICS members, published today (Thursday) reveals confidence is close to record levels. Private housebuilding rose fastest, with 40% more surveyors reporting rises in work than in Q2 2003. The number of members reporting an increase in public housing work was up 21%.

Government investment also paid off with 31% more surveyors reporting a rise in non-housing public building work. The quarter was also good for those in the commerial sector with 38% more surveyors reporting an increase.

RICS construction faculty chairman Launce Morgan said: "Good news for profits, but this does raise concerns that the industry will follow its age-old cycle of boom and bust. Difficulties in recruiting may stoke wages and the expected rises in interest rates will slow things down a little. This will help stabilise an industry prone to over-expansion at times."