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[April 2006]
UK Construction Bounces Back in First Quarter
The sale of construction products in the UK rose in the first quarter of 2006, the first time in over a year. After a fall in construction output in 2005 - the first decline for ten years - the Construction Products Association’s quarterly Barometer Survey records a score of 59, above the 50 no change mark for the first time in 12 months. The increase in product sales occurred across both the heavy and light sides of the industry.
Commenting on the results of the survey, the CPA's Economics Director, Allan Wilen said: "The survey provides early signs that the industry is going to bounce back from a disappointing year in 2005. Particularly noticeable is the positive response from the manufacturers of heavy side products for whom the market has been particularly difficult over the last couple of years. They are beginning to benefit from the start of some of the much delayed infrastructure projects, particularly in the roads and water sectors".
However the light side shows the strongest growth, pointing to a potential pick-up in new housing work and school and NHS building programmes.
The construction products industry remains positive about the prospects for the next quarter of the year, with the Barometer recording a score of 60 from across the industry. Explaining this optimism, Wilen said: "The light side manufacturers remain particularly positive with the changes to the Building Regulations that come into effect on 6 April, benefiting those manufacturers of products that will help make our buildings more energy efficient.
"The main concern in looking forward is the impact of the dramatic increase in the price of energy on the cost of construction products. Some companies have seen their energy bills rise by more than 200% over the last year and the consequences of this on the price for products is only just beginning to feed through."
www.constprod.org.uk
ENDS