New orders revival underway?

New construction orders in the first quarter were worth nearly £12.7bn in value, according to the latest data from the Department of Trade & Industry. That figure represents a 4% increase compared with the £12.2bn generated in Q1 2006. Volume was just 1% improved.

More encouragingly, Q1 2007 was 20% better than Q4 2006 in value terms and 4% better in volume terms.

In both quarterly comparisons, public housing and infrastructure were bright spots. Public housing improved 90% in value and 20% in volume compared with Q4 2006 and 22% in value and 27% in volume compared with Q1 2006. Thanks to the award of the £340m M1 junction 21-30 scheme to a team of Vinci/Morgan Est/Sir Robert McAlpine in January, infrastructure orders improved 67% in value and 35% in volume compared with Q4 2006 and 51% in value and 44% in volume compared with Q1 2006.

Other public also looked healthier, while private commercial showed some improvement against the previous quarter.

In the year to Q1, new orders were worth nearly £48.3bn in value, up 7% compared with the year to Q1 2006. Volume improved by 4%.

However, only two sectors showed volume growth: public housing up 26% and private commercial up 21%.

Electricity industry orders strengthened during the first quarter.