Activity in construction rose for the second consecutive quarter in Q3, according to the latest Construction Trade Survey published by the Construction Products Association (CPA) today (11 November).
Growth was reported by firms across all areas of the industry including building contractors, SMEs, specialist contractors, civil engineers and product manufacturers.
43% of building contractors stated that activity rose in Q3 - the second highest balance since 2007.
Private new housing was the key driver of construction growth in Q3 with 22% of contractors, on balance, reporting that activity rose in Q3 compared with a year ago.
Commenting on the survey, the CPA's economics director, Noble Francis, said: 'It was encouraging to see that the recovery, which started in Q2, has continued into Q3. A balance of 43% of contractors reported rises in activity, the second highest level since pre-recession 2007.
'Although private housing is clearly driving industry growth, all construction sectors enjoyed increases in output. With rises in new orders and enquiries, the industry clearly expects that the recovery in output will continue over the next 12 months.
Julia Evans, chief executive of the National Federation of Builders said: 'Confidence is returning to the industry and we are seeing measurable signs of growth and a healthy number of orders. However, the cost of doing business continues to rise as materials and labour cost increases far outpace revenues.'
She continued: 'Repair and maintenance continues to fall behind all other areas in construction and this could be taken as further evidence that the Green Deal is not yet taking hold. Furthermore, cutting the Energy Companies Obligation would further depress retrofit activity as it is the only scheme currently generating any significant output in this sector. We need greater promotion of all the options for retrofit and not get tied up in the red tape of the Green Deal.'
