RICS report points to strong return for private sector

The construction industry is set to perform strongly in 2006, according to the latest economic report issued by the RICS this week.

The UK economic brief points to new orders being 14% higher than this time last year and surveyors being "very optimistic about future workloads". It says the upturn in fortunes is down largely to the strong return of the private sector with both housing and commercial property projects in "full flow". "It seem undeniable that the high and rising rpices for both types of completed product are now driving the creation of new supply," it says.

The report adds that this rosy outlook will feed through to the labour market, with a good rise of employement expected in 2006. "In recent months average earnings are once again showing signs of picking up which is consistent with a strengthening labour market."

Source

QS News