Construction activity continues to rise firmly, with the private housing sector seeing the largest increase according to the latest construction survey from the Royal Institution of Chartered Surveyors (RICS) published today (Monday, 3 October).
Housing workloads showed the largest rise in 15 months, whilst private commercial market activity continues to rise, though not as quickly as seen last year as business demand for commercial property has slowed.
Work commissioned by the public sector is rising modestly but at a slower pace than last year, though government investment funding is predicted to keep growing.
The third quarter saw construction activity across all areas pick up slightly, ensuring growth in activity remains higher than the long-term average. 17 per cent more chartered surveyors report a rise than a fall in workloads for this quarter, up from 15 per cent in the second.
Confidence in the outlook for workloads over the next year is high following August’s interest rate cut. The Olympic Games in 2012 are also expected to boost construction workloads in London and the South East over the coming year.
RICS chief economist Milan Khatri, said:
‘Housing activity has rebounded from a brief slowdown earlier in the year as stable demand has raised confidence.
‘The construction industry continues to see steady growth despite a wider economic slowdown. The lack of marked volatility in the economy has helped businesses plan ahead and kept activity rising. Looking ahead, further rises in government spending will support workloads while some support will also come from the Olympics in London in 2012.’