It is unsurprising in the week that the Chancellor admitted his economic growth forecast was over optimistic that the construction sector, so dependent on how much money Gordon Brown dishes out, took a bit of a hit in 2005.

Output is expected to slip slightly in 2005, the first time the industry has faced a dip in a decade. This drop is expected to be followed by a modest rise next year before a slightly healthier revival in 2007. No doubt the rather subdued economic climate as well as the poor state of the public coffers are taking their toll. The long awaited return of the commercial property market has also failed to really take hold this year and there are some concerns as to just how long the retail sector can continue to be so lucrative for the construction industry.

The concern over the economic climate should probably be tempered, not least by the fact that 2004 was a bumper year for the sector. The latest EC Harris economic survey points to healthy order levels for contractors that should feed through to improved output. One hopes that 2005 was a temporary lull rather than a sign of things to come.

What a way to go

This is the last edition of QS News in 2005. Last week’s QS Awards, where the achievements of the profession were celebrated, was hopefully a fitting way to end the year. Well done to both the winners and all that were shortlisted at the event, which attracted a crowd of nearly 400. Thanks also to all QS News readers for your support for the magazine since its launch this April, and best wishes for Christmas and 2006.

Source

QS News