Brickonomics

Optimism alive and kicking in construction

The RICS construction survey for the third quarter of 2009 found confidence over increased workloads returning to the industry for the first time since 2008 Q1. This was despite an overall fall in workload across the industry as a whole...

Posted by Brian on November 6, 2009 12:04 PM

Growing evidence of double dip collapse for construction

The latest round of trade survey data points to an ugly acceleration in the rate of collapse of workloads. Persistent sightings of green shoots over the late spring and summer now look to have been little more than a mirage....

Posted by Brian on November 3, 2009 11:21 AM

Falling construction helps hold UK in recession

An estimated fall of 1.1% in construction output in the third quarter of this year has helped to hold the UK economic growth in recessionary territory. Much to the surprise of many analysts the UK economy appears to have remained...

Posted by Brian on October 23, 2009 9:40 AM

Contractors are bagging a third less new work than at peak

The latest new orders figures provide a sobering injection of reality after the barrage of "it's okay the recession is over" talk that seems rife. Yes the rate of collapse has slowed. But it's the level that really matters at...

Posted by Brian on October 1, 2009 10:47 AM

Economy not as bad as we thought thanks to construction

The fall in GDP wasn't as big as we thought thanks to stronger than estimated construction activity. That is the assessment of the statisticians who put together the national accounts. But is this good news or bad news for construction?...

Posted by Brian on September 29, 2009 10:51 AM

111,000 jobs lost to construction... and that is just the start

The latest employment figures make grim reading for the construction industry with the number of workforce jobs plunging by 61,000 in the second quarter of this year. This means that 111,000 jobs have been lost to the industry since they...

Posted by Brian on September 16, 2009 10:07 AM

Output figures show continued fall in cash flowing into construction

At first sight the latest construction output figures provide some relief. The fall in output in the second quarter of the year estimated to be just 0.5% and there was a slight rise in the output of new work measured...

Posted by Brian on September 4, 2009 4:33 PM

CIPS: construction still the sick man of the UK economy

There is nothing remarkable about the latest CIPS construction survey other than the comments, which are somewhat more guarded than those that accompanied last month's data. It found workload in the industry still falling on its measure which registered 47.7...

Posted by Brian on September 2, 2009 10:18 AM

GDP figures stick with estimate of 2.2% fall in Q2 construction output

No surprises in the GDP figures out today, after the savage revisions made to the previous quarter. Things aren't quite as bad as first thought. GDP was revised up gently from a drop of 0.8% in the second quarter to...

Posted by Brian on August 28, 2009 10:06 AM

RICS survey finds some breathing space before the real storm hits

The surveyors' body RICS found that public sector funding was providing some much needed relief for the construction sector. The shift in the numbers in its construction market survey was quite marked. The balance of firms seeing a decline in...

Posted by Brian on August 14, 2009 10:16 AM

Redundancies in construction jump to 170,000 over 12 months

The latest employment figures show a continued shocking rate of redundacies in construction with another 42,000 jobs shed from the industry in the second quarter of this year. That makes a total of 170,000 recorded job losses over the past...

Posted by Brian on August 12, 2009 10:05 AM

CIPS talk of optimism is baffling

The CIPS appeared to be putting a rather positive spin on its July figures for construction activity on the back of a slowdown in the pace of decline and swelling optimism among its respondents. The press release reads: "Optimism about...

Posted by Brian on August 4, 2009 10:43 AM

Why contractors can't help suicidal bidding when the workload turns down

The most concerning issue now facing construction as it dives deeper into recession is that of firms taking on work at less than cost. This is not sustainable business behaviour. More than falling workloads, falling prices defined the chaos that...

Posted by Brian on August 2, 2009 1:38 PM

Contractors face a £24 billion drop in new work

UK contractors should prepare themselves for a £24 billion drop in the annual cash value of new work coming through as the recession reaches its expected bottom in 2011. Shrinking volumes and plunging prices threaten to drag the cash spent...

Posted by Brian on July 30, 2009 10:33 PM

Seven years of construction growth wiped out say GDP figures

The latest GDP figures showed a marked slowdown in the rate of collapse of the economy. But the drop of 0.8% was significantly more than economists were expecting, if the mood judged by Reuters gives a fair assessment. The median...

Posted by Brian on July 24, 2009 10:22 AM

It's worse in construction than we thought say forecasters

The latest forecasts to emerge in the current round all see the future prospects for construction as far gloomier than was expected when the number crunchers examined the figures three months or so ago. Experian now expects a 12% decline...

Posted by Brian on July 13, 2009 4:53 PM

Recession may cost 800,000 construction jobs - that's one in three

The latest forecast from the Construction Products Association puts the annual peak to trough fall in construction at a shade above 20%. That probably translates to a 22% to 23% fall peak to trough on a quarterly basis, which compares...

Posted by Brian on July 6, 2009 11:16 AM

Duff jobs figures pose a threat to construction industry

The official employment figures released today show that the construction industry has lost just 40,000 jobs. That clearly is rubbish. Were the figures accurate and were the construction output figures accurate it would suggest that as the industry has plunged...

Posted by Brian on June 17, 2009 10:18 AM

5 reasons why we might be facing the mother of all construction recessions

It's coming around to the construction forecasting season again and the industry prognosticators will be gathering to discuss the ups and downs of the industry. If I were you, I'd be bracing myself for some pretty savage revisions to what...

Posted by Brian on June 16, 2009 2:50 PM

The orders figures and public spending fears point to industry chaos ahead - need it be so?

The good news is that after the monstrous distraction over the past month cause by raking over expense claims made by MPs we are getting back to debate about things that really will shape our lives - notably how much...

Posted by Brian on June 11, 2009 1:20 PM