CPA welcomes rise in construction orders
New orders increase in fourth quarter but concerns remain over reliance on public sector work
COMMENTING on the latest figures on new construction orders published last week by the Office for National Statistics (ONS), the Construction Products Association has welcomed the 18% rise in orders during the final quarter of 2010.
However, the Association has expressed concern that the increase is still dependent upon spending by the public sector on social housing, education, health and infrastructure, with little sign of a recovery in the private sector.
According to the latest ONS figures, public housing orders were 69% higher during the fourth quarter, compared with the third quarter, while orders for public non-housing, which includes education, health and work on the Olympics, rose 29% during the final quarter and infrastructure orders rose 37% over the same period.
Meanwhile, commercial and private housing orders remained flat during the final quarter, while orders for industrial factories and warehouses rose by 14%.
Figures for the full year show that new orders for construction work as a whole remained at 2009 levels.
‘Although the final quarter highlighted an 18% rise in new orders, the extent to which this is reliant on the public sector is still extremely concerning given the sharp cuts in public spending outlined in the Comprehensive Spending Review that will occur after April,’ said Noble Francis, economics director of the Construction Products Association. ‘Given the extent of the public sector cuts it is essential that private sector construction picks up.’
The Construction Products Association has made a number of suggestions regarding this in advance of this month’s Budget, such as reducing VAT on repair and maintenance work valued less than £10,000 and work that improves the Energy Performance Certificate rating of a property by 10 points.
‘Measures such as this clearly indicate how construction can help to drive economic growth and rebalance the economy at a time when public finances are constrained,’ said Mr Francis.
COMMENTING on the latest figures on new construction orders published last week by the Office for National Statistics (ONS), the Construction Products Association has welcomed the 18% rise in orders during the final quarter of 2010.
However, the Association has expressed concern that the increase is still dependent upon spending by the public sector on social housing, education, health and infrastructure, with little sign of a recovery in the private sector.
According to the latest ONS figures, public housing orders were 69% higher during the fourth quarter, compared with the third quarter, while orders for public non-housing, which includes education, health and work on the Olympics, rose 29% during the final quarter and infrastructure orders rose 37% over the same period.
Meanwhile, commercial and private housing orders remained flat during the final quarter, while orders for industrial factories and warehouses rose by 14%.
Figures for the full year show that new orders for construction work as a whole remained at 2009 levels.
‘Although the final quarter highlighted an 18% rise in new orders, the extent to which this is reliant on the public sector is still extremely concerning given the sharp cuts in public spending outlined in the Comprehensive Spending Review that will occur after April,’ said Noble Francis, economics director of the Construction Products Association. ‘Given the extent of the public sector cuts it is essential that private sector construction picks up.’
The Construction Products Association has made a number of suggestions regarding this in advance of this month’s Budget, such as reducing VAT on repair and maintenance work valued less than £10,000 and work that improves the Energy Performance Certificate rating of a property by 10 points.
‘Measures such as this clearly indicate how construction can help to drive economic growth and rebalance the economy at a time when public finances are constrained,’ said Mr Francis.
