— RICS Survey Shows Construction Activity Levels Rising
LONDON (MNI) – Despite official National Statistics data showing
construction output plunged 3% in the first quarter, an industry survey
released today suggests activity levels in the sector actually rose a
little in the first three months of the year.
A survey from the Royal Institute of Chartered Surveyors shows that
construction activity increased on the quarter with the total workloads
net balance swinging back into positive territory for the first time
since Q2 2011, rising from -7 to 8, that is a net 8% of surveyors
reported rising rather than falling workloads in Q1.
The survey showed private housing, industrial, and commercial
sectors recorded rising workloads in Q1. In contrast, public housing
workloads declined in Q1 and other public works remained broadly flat
Both the Bank of England and analysts have been puzzled by the
weakness in the official construction sector data with the latest set of
MPC minutes noting “the sharp falls in construction output in December
and January were perplexing, and the Committee was minded not to place
much weight on them.”
Simon Rubinsohn, chief economist at RICS, said their survey was
good at capturing turning points in the construction industry, but did
not fare so well in capturing moves in the highly volatile official
construction series.
The latest estimate of Q1 construction is out Friday, and Rubinsohn
said it could even be revised down because of the assumptions the Office
for National Statistics had made.
However, RICS survey suggested the construction sector had found a
base an activity was now oscillating around flat and the weakness shown
in the official data seems exaggerated.
–London newsroom 0044 207 862 7491; email:wwilkes@marketnews.com
[TOPICS: M$B$$$,M$BDS$,MABDS$]
