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Positive news for the UK’s construction industry

World Cement,

New construction orders in the UK are estimated to have increased by 19.8% q/q and by 32.8% y/y in 2Q13. According to the Office for National Statistics, of particular note was the growth in new construction orders for public and private housing.

In July 2013, construction output rose by 2.2% m/m and by 2% y/y.

“Although construction output grew in the second quarter of 2013, this was purely driven by housing, which in turn has been boosted considerably by Help to Buy. However, the latest figures on new orders show that the £111 billion construction industry is ready to enjoy a sustained recovery over the next two years. A rise in house building has been augmented by increases in major infrastructure and a return to growth in schools and hospitals construction [...] Overall, there are strong positive signs of a sustained recovery in construction output, not just in housing but also in private and public construction sectors. Our forecasts anticipate that construction output will grow 12.2% by 2016 as these new orders feed through into activity on the ground, providing an additional £11.8 billion for the industry and the wider economy,” said Dr Noble Francis, Economics Director at the Construction Products Association, in response to the ONS figures.

Edited from various sources by Louise Fordham

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