The UK’s construction industry has enjoyed growth for the third successive quarter, the first time for more than five years, according to a new report.

Building and specialist contractors, civil engineers, product manufacturers, and small and medium-sized enterprises (SMEs) were all among the beneficiaries, the latest trade survey from the Construction Products Association (CPA) shows.

The new report covered the final three months of 2013.

Its results show a continuation of the recovery which started between April and June of last year.

CPA economics director Dr Noble Francis cautioned that contractor profit margins had dropped in the fourth quarter of last year because of higher labour, energy and transport costs.

He said: “The recovery, which started in 2013 Q2, continued, though risks remain.”
Private and public new housing were the primary drivers, with balances of 20% and 32%, respectively, the survey found.

It also showed that 15% of building contractors saw activity expand in the fourth quarter, although this fell from 43% in the previous three months.

Building contractors saw activity falls of 13% and 15%, respectively, in housing repair and maintenance and non-housing repair and maintenance.

The survey anticipates an increase in exports during the following 12 months among both heavy side manufacturers (45% on balance) and light side manufacturers (58% on balance).

More than a third (34%) of building contractors, on balance, experienced rising labour costs, the report added.

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