The latest RICS quarterly survey shows a 15% rise in the number of surveyors expecting their workloads to grow over the coming 12 months, suggesting that the industry has finally turned a corner.
However, given how horrendous 2012 was, things could hardly have got much worse.
The survey revealed a small increase in reported workloads in the final three months of 2012. Over this period, a net balance of 6% more respondents indicated that activity had increased, with the most substantial gains being seen in infrastructure and private commercial development.
89% surveyors said that financial constraints were holding the industry back, while two-thirds cited lack of demand. More than half also said that the poor weather conditions were a significant factor in hampering a recovery in construction.
Input costs continue to climb, with 15% more respondents reporting rises rather than falls. Prices have now been moving upwards since the beginning of 2010 and have been significantly outpacing output costs for five years.
RICS chief economist Simon Rubinsohn said: “After a truly dreadful year, if one believes the official data, there are signs that 2013 will bring some better news for the construction sector. Most notably, the numerous measures that the government has introduced with a focus on infrastructure appear to be bearing some fruit.
“Critically, competitive pressures in the sector remain intense which is continuing to erode profit margins. And for the time being financing constraints are still an issue although the Funding for Lending Scheme should gradually help to ease this challenge.”
Got a story? Email news@theconstructionindex.co.uk
