28 November 2018

CPA updates: ‘Q3 of 2018 was a period of growth’

TRADA image

TRADA members can now download the Construction Industry Forecast Autumn 2018, Construction Trade Survey October 2018 and State of Trade Survey 2018 Q3 for free from the TRADA website.

 

These documents are made available from the Construction Products Association (CPA) and are intended to provide information, analysis and forecasts covering all aspects of the construction sector, providing you with insight about the industry.

 

The highlights have been shared below.

 

Construction Industry Forecasts Autumn 2018 – Key points

 

  • Construction output to remain flat in 2018 (0.1%) and rise by 0.6% in 2019
  • Private housing starts to rise 2.0% in 2018 and 2019
  • Offices construction to decline 10.0% in 2018 and 20.0% in 2019
  • Retail construction to fall 10.0% in 2018 and 2.0% in 2019
  • Infrastructure work to rise by 8.7% in 2019 and 7.7% in 2020

 

 

Construction Trade Survey October 2018 – Key points

 

  • Q3 of 2018 was a period of growth for the construction industry
  • Both heavy side and light side construction product manufacturers reported an annual increase in sales during the quarter, workloads increased for civil engineering contractors and output rose for main contractors and SME builders
  • Specialist contractors reported a fall in output, on balance
  • Activity was concentrated in several sectors: housing, across private and public and repair, maintenance and improvement, as well as infrastructure preliminary works
  • The forward-looking indicators of enquiries and new orders suggest that these contractor and sector growth dynamics are unlikely to change over the coming quarters, although civil engineering contractors’ order books showed early works on major infrastructure projects such as HS2, Hinkley Point C and Round 3 offshore wind are set to add to infrastructure workloads

 

 

State of Trade Survey 2018 Q3 – Key points

 

  • 27% of construction product manufacturers, on balance, reported that sales rose during the third quarter of 2018
  • 36% of heavy side product manufacturers and 29% of light side product manufacturers reported that they anticipated sales rising over the coming year
  • Only 9% of heavy side and 5% of light side firms reported that they were operating at over 90% capacity in Q3
  • Cost inflation persisted in Q3, with fuel costs driving higher unit costs
  • Exports fell in Q3, with the light side reporting the weakest balance on record