Strong housing activity boosts products sales

Strong activity in the commercial and public new housing sectors has been the driving force behind the increase in construction output during the second quarter of 2007, with the rise in activity boosting product sales volumes.

According to the latest joint Trade Survey Report from the Construction Products Association and the Construction Confederation, contractors have reported output well ahead of that a year ago and are experiencing less difficulty in recruiting skilled labour.

However, with manufacturers facing high energy costs and raw material prices, contractors can expect these cost pressures to continue to filter through.

Commenting on the survey, Máren Baldauf, economist at the Construction Products Association, said: "The increase in construction product sales during the second quarter was again driven by light side manufacturers, with 94% of firms reporting higher sales volumes compared to last year."

Perhaps unsurprisingly, an increase in water and sewerage works has pumped up the orderbooks of civil engineering contractors.