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  • Construction output in the third quarter increased by 0.8% on the previous quarter and by 2.9% on a year earlier, according to the latest ONS statistics. Housing new work, both public and private, remained the dominant driver of rising output compared to the previous quarter, while commercial output was down compared to both the previous quarter and a year earlier.
  • A positive balance of 60% of building contractors reported a rise in output in the third quarter of 2014, according to the latest Construction Trade Survey, compiled by the Construction Products Association (CPA). 11% more building contractors reported that margins had fallen since the previous quarter than stated that they had risen. 
  • The 2013/14 UK Construction KPIs, compiled by Glenigan, found that average profit margins in the industry have fallen to 2.1%. Other headlines from the Key Performance Indicators include:
    • 69% of projects were completed to budget or better, whereas only 45% of projects were completed on time or better.
    • 82% of clients rated their satisfaction with the finished product as 8 out of 10 or higher, the worst performance since 2007.
    • Mixed environmental performance: Energy use in the construction process increased compared to the previous survey, whereas mains water use was reduced.
    • An improving skills base compared to the previous survey. On average 71% of direct employees were qualified to NVQ level 2 or higher, and 61% held a CSCS card. 

The full results include a range of detailed measures covering client and contractor satisfaction, productivity, respect for people and staffing levels and environmental performance. Glenigan, in partnership with CITB, produce the report for the construction industry and it can be downloaded here


  • The UK unemployment rate fell to 6.1% in the third quarter of 2014, down from 6.5% in the second quarter and 7.8% a year earlier. The 16-64 employment rate of 73.0% is the highest seen since the first half of 2008- during which period the unemployment rate was significantly lower than it is today, averaging 5.3%.
  • Average weekly earnings, excluding bonuses, increased by 1.3% in the three months to September, an improvement on the 0.9% estimated last month but still well short of levels  needed to restore the spending power UK consumers had prior to the recession. The rate of Consumer Price inflation slowed to 1.2% over the year to September.

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