03.11.2005

UK construction orders up 7%

New construction orders rose by seven percent for both the 12 months to September 2005 and for the quarter ended September 31, compared to the same period as year earlier, according to Department of Trade & Industry statistics.

Construction orders in the year to September 2005 rose by seven percent compared to the previous twelve month period, and also by seven percent in the third quarter (to the end of Sept) compared to the same quarter in 2004. All figures are quoted in constant (2000) prices.

Both Private and Public housing orders increased in both the 12 months and the quarter, by between three and four percent. Infrastructure orders for the 12 months were up by 37 percent and by a whopping 63 percent for the quarter.

Public non-housing orders were up marginally but private commercial orders fell by three percent compared with the previous year and by 10 percent for the quarter compared to 2004. Yet Private industrial orders were up for the same period by 14 and one percent respectively.

Vertikal Comment

These numbers are not surprising, given the anecdotal feedback that we have been receiving, it suggests that the next year or two looks promising for lifting equipment sales and rental. With infrastructure construction already quite strong, and plenty of new orders being placed, the future should be bright for crane hirers, and yet a number of the early inputs to our Cranes&Access 2005 rental rate guide, indicate that crane rates are falling and hirers feel under pressure?? Something does not add up?