Recent figures from the Office of National Statistics (ONS) shows that recent optimism that has abounded within the construction is justified, with output rising 1.8 per cent in January this year when compared with December 2013, and new orders in the last quarter of 2013 rose 1.5 per cent over the third quarter.
Output in January was also 5.4 per cent higher than it was at the same time in 2013, although the heavy snow of 2013 must be taken into account. Considering that new orders are a strong sign of future output, it would appear that this trend of growth within the industry is likely to continue for at least the next year and even as much as 18 months.
So what are the main drivers of this economic growth?
Private housing was the main facilitator of construction industry growth at the start of this year, with output 23.3 per cent higher than in January 2013. Yet one of the main signals of continued economic growth comes from the output in the non-public housing sector which – primarily responsible for building schools and hospitals – grew by 2.2 per cent despite having previously born witness to a highly unfortunate 34 per cent drop in output between 2010 and 2013.
In addition, new orders in the final quarter of last year were 16.8 per cent higher than in the third quarter.
Outlook not (necessarily) all positive
While the government has announced finance plans to aid the infrastructure sector, output in this sector fell by 2.3 per cent in January compared to December and was 3.2 per cent lower than in January 2013. Added to this is the fact that order in the final quarter of last year were 22.2 per cent lower than in the previous quarter. Yet things could certainly turn around if the government follows through with its promise of delivering on its plans for financing infrastructure.
DPR have 20 years’ experience as roofers in Leeds and share the optimism of industry experts like Dr Noble Francis, although in our experience we have learned to be cautious, with caution being something that comes as par for the course with any successful roofing service. For a quotation with no obligation, please call 0113 335 0043.