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UK construction at weakest level for four years

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    UK construction at weakest level for four years

    Taken from Mortgage Strategy

    UK construction output is at its weakest level for four years, official figures show.

    New data from the ONS reveals that construction output contracted by 1.1 per cent in the third quarter, reflecting the three months following the Brexit vote, although month-on-month it was 0.3 per cent higher in September.

    It was weakest performance since the third quarter of 2012.

    IHS Global Insight chief UK and European economist Howard Archer says that by contracting 1.1 per cent quarter-on-quarter in the third quarter after a dip of 0.1 per cent in the second quarter, the sector “is effectively in recession.”

    The main weakness in construction output in the third quarter came in repair and maintenance work. New work rose 1.2 per cnet month-on-month in September and actually edged up 0.3 per cent quarter-on-quarter in the third quarter.

    Archer says: “The possibilities that the economy will slow appreciably over the coming months despite its current resilience and an uncertain outlook for the housing market are also concerns for the construction sector.

    “Additionally, construction companies’ input costs are being pushed markedly higher by a sharply weakened pound.

    “A substantial amount of building components and materials are imported.

    He adds: “The construction sector will take some heart from Chancellor Phillip Hammond prioritising infrastructure and housing initiatives in his fiscal efforts to support the economy in the Autumn Statement on 23 November.

    “Additional measures are set to be announced in the Autumn Statement, while the Chancellor has already indicated that an additional £2 billion will be earmarked to tackle the housing shortage on top of a £3 billion house building fund that has already been targeted at small and medium-sized developers, offering cheap loans or financial guarantees.”

    #2
    I guess this reaffirms that London is a separate Country. If you take a train into Waterloo, you'll see hundreds of cranes building huge blocks of flats all along the Thames. The only view you'd get is of the huge block of flats next door. Give it ten years and it'll be like Asia in its density.

    Comment


      #3
      Originally posted by Chuck View Post
      I guess this reaffirms that London is a separate Country. If you take a train into Waterloo, you'll see hundreds of cranes building huge blocks of flats all along the Thames. The only view you'd get is of the huge block of flats next door. Give it ten years and it'll be like Asia in its density.
      Depends if there is a recession or not.

      Every time there is a recession the cranes disappear.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #4
        Do you think its because

        a) Brexit made us all not want homes...

        b) Masses of executive property has been built in the last few years and that it has been priced well above the affordable wage limit of the people living near it. That property has been sold off plan and jumped on by foreign investors who have spent the last 8 years flipping un built homes between each other for massive profits. Now the homes are getting to completion it has become apparent there are no end buyers for these homes so building more of them is going to **** up the builders even harder just like the Celtic tiger.

        fells to me like building trade has screwed itself all over again just like when Canary Wharf went bust in the 90's...

        Comment


          #5
          I might know something about this subject


          Originally posted by Chuck View Post
          I guess this reaffirms that London is a separate Country. If you take a train into Waterloo, you'll see hundreds of cranes building .
          Many of these projects started months/years ago & will be completed - its what sites will replace them when they are done?

          Originally posted by bobspud View Post
          a) Brexit made us all not want homes...
          Residential construction (homes) is only 35% of output, commercial construction has defiantly taken a hit. I am not really involved with infrastructure so can't comment.

          Construction is always the first thing to suffer in uncertain times: we shall see what the future brings, thankfully I am a permie as the agency staff will be / have been the first to go.
          Growing old is mandatory
          Growing up is optional

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