Plant hire prices dip slightly despite upturn in construction

The latest data from the Office for National Statistics for the third quarter of this year show that construction plant hire prices have not risen despite the recent upturn in construction activity and the widening view that the recovery is gathering pace.

Prices remain at a level not far above the lowest for the past decade, having dipped 0.4% in the third quarter. Prices were, however, up 0.5% on the third quarter a year earlier. But this is scant consolation given that was the lowest point prices reached since 2003.

As the graph shows, the previous uplift in construction activity in 2010 did drive a mini recovery in plant hire prices. So, while the stability in prices up to now will come as some comfort to contractors, rising plant hire prices would seem to be on the cards in the not too distant future.