HONG KONG, Nov. 25 /PRNewswire-Asia/ -- All construction workloads fell in the third quarter in the UK according to the latest RICS survey of the sector with the exception of the non-housing public works category which is providing an important crutch for the industry.
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Workloads in non-housing public sector construction reached their most positive level since the first quarter of 2008 as the acceleration in planned public sector capital spending continued to filter through into new projects in education and health amongst other areas. Elsewhere, workloads continued to decline albeit at a lesser pace than in the second quarter of the year. The private commercial and industrial sectors remain the weakest part of the construction industry with larger negative readings than either public housing or infrastructure.
Significantly, private housing saw a material reduction in the number of surveyors reporting falling workloads. As recently as the final quarter of last year, 66 percent more surveyors were reporting a fall in workloads. This figure lessened to 49 percent in the first three months of the year and 28 percent in the second quarter but is now at just five percent
Interestingly, surveyors are a little more positive about the outlook for over the next twelve months with nine percent more respondents expecting output to rise than fall - the first positive reading since the first quarter of 2008. Although employment is thought likely to fall a little further, the net balance of respondent expecting to see a reduced headcount narrowed to just 3% compared with 24% in the second quarter and 46% in the first three months of the year.
Despite this, the proportion of surveyors reporting skill shortages for trades person fell to just two percent, the lowest reading since the question was first asked in 1998.
At a regional level, workloads increased further in Wales with a net balance of 17% of surveyors responding positively compared with 1% in Q2. Meanwhile, the picture in London/ South East appears to have stabilised after five successive quarterly declines. Other parts of the country are, however, continuing to see construction activity drop according to the results of the survey. Looking forward, confidence regarding the outlook for workloads over the next twelve months is most positive in Wales followed by the Midlands/East Anglia and London/South East. Surveyors are most pessimistic in Scotland and Northern Ireland.
Commenting Simon Rubinsohn, RICS chief economist said:
"With development finance currently still in short supply it is hardly surprising that workloads in the construction industry remain under pressure. The good news is that the picture does not appear to be getting very much worse and there is even a little bit more optimism about the prospects. However the continuing squeeze on profit margins in the sector is a concern alongside the likely scaling back in government projects over the coming years.
"Sadly there is little evidence as yet that residential home starts are picking up which is a particular worry given that a shortage of stock is contributing to the recent rebound in house prices."
The situation is a little bit different in Hong Kong. Mr. Kenneth Kwan, spokesperson of RICS Hong Kong, said, "While the workloads in the construction industry have fallen and the unemployment rates of construction workers have risen since middle of last year, the situation in Hong Kong is improving. With significant government spending on infrastructure and public works programmes and the speeding up of those delayed private developments, the overall construction workloads in Hong Kong are expected to rise very soon. This will likely be reinforced further by the resumption of some of the major projects in Macau."
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About RICS & RICS Asia
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 122 countries.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: http://www.ricsasia.org .
Media enquiry, please contact:
RICS Asia Public Relations Representative
Ms Belinda Chan / Ms May Cheung
Tel: +852-2372-0090
Fax: +852-2372-0490
Mobile: +852-9379-3045 / +852-9099-2218
Email: belinda@creativegp.com / may@creativegp.com
