Q1 Construction figures revised downwards

Revised ONS data shows that construction output actually fell by 4.8% in Q1, not 3% as first reported. The volume of new construction work fell by 6.9% quarter-on-quarter while infrastructure was the worst performer, down 16%.

CPA and Experian revise 2012 forecasts upwards

Both CPA and Experian have recently revised their 2012 forecasts for construction output upwards - CPA from a 5.2% fall to "only" a 2.9% reduction, while Experian still expect a 4.4% fall (previously 5.6%). This will then be followed by a 0-1% growth in 2013 and a 3.5-4.5% growth in 2014. Infrastructure (especially rail) and private housing are amongst the strongest sectors. In contrast, private commercial output is forecast to fall in both 2012 and 2013, while "public sector spending cuts are now beginning to bite".

Renewable Energy Investment Booming

Glenigan's data shows that investment in renewable energy projects around the UK took off last year, with wind energy a major focus. The total value of renewable energy project starts was £4.3bn over 2011, almost double 2010’s £2.2bn. Of this, £3.7bn was on wind turbines and related projects.

80% of universities planning to build by 2013

A survey by Wates of 52 senior estates staff has found that 79% would start a major construction project worth £5m or more this year or next. The most popular types of projects were improvements to teaching areas, research facilities and student accommodation.

Tough 2012 for Electrical Contractors

A new survey has found little optimism amongst electrical contractors, with 41% expecting a fall in turnover this year and a further 39% seeing no change. This is not helped by ongoing concerns over the Green Deal. Businesses in the North West, West and Greater London were the most optimistic.

Planning restrictions lifted

The revised National Planning Policy Framework has simplified the planning process and is broadly seen as positive by housebuilders and others, if not environmentalists. Precise implications for local councils and the definition of sustainable development are amongst areas for further clarification. 

Construction project starts well up in 3 months to February

Glenigan's data shows that residential and civil engineering construction projects starting on site increased in the three months to February to boost the underlying year on year value of total construction project starts by 17%. Private housing starts were up by 42%, mainly in London, the south and the east of England. Utilities and infrastructure also recorded significant increases.

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