Cheshire construction consultants see growth for Q3
Cheshire-based construction intelligence specialist Barbour ABI is reporting growth trends in both private housing and industry – in contrast to Office of National Statistics figures issued last week.
The ONS update showed that construction output for the month of August fell by 0.1 per cent when compared to July.
Yet Michael Dall, Barbour ABI’s lead economist, sees the true situation as being more buoyant.
He said: “Although quite a stark contrast from the 2.8 per cent growth we saw month-on-month from June to July, we shouldn’t be discouraged by this marginal drop in output, which could be attributed to a number of factors.
“For one, August is the peak of the holiday season so we can expect to see a slight drop in activity. The bigger picture shows year-on-year growth of four per cent, a significant increase and a positive sign.
“Once again, private housing has come out on top as the star performer. We expected to see further growth in this sector and we have not been disappointed. A 1.6 per cent rise from July to August, and 18.1 per cent growth year-on-year is very encouraging.
“This is another supporting statistic that indicates the Help to Buy scheme is having the desired effect in boosting the housing market. Just this week, many lenders revealed the mortgage options available to potential home-buyers under the scheme so it doesn’t look as though the ‘Help to Buy effect’ is going to dip anytime soon.
“That said, private housing wasn’t alone – the private industrial sector also showed strength in August, with output up 3.9 per cent on July.
“Initial construction project data collated by Barbour ABI for September reflects these trends, showing growth in those major sectors, so watch this space - we expect Q3 figures to show strong expansion in construction overall. Despite some volatility in the figures in recent months, the industry is certainly heading in the right direction and beginning to turn the corner to a more sustained period of growth.”
Barbour ABI, based at Chaehire Oaks near Ellesmere Port, supplies data to the construction industry and beyond, including contractors, engineers, manufacturers and distributors.
This was posted in Bdaily's Members' News section by Simon Malia .