Trade boost for UK construction industry
The construction industry is set to enjoy a buoyant year because of increased orders fuelled by booming commercial property and house improvements, according to a new report today.
A survey of 2,500 firms by Lloyds TSB showed that half reported stronger orders in the last six months of 2006, with the trend set to continue this year.
More than one in three of those polled said they planned to increase prices over the coming months, with a similar number predicting higher profits.
Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: “Lack of skilled labour in the construction industry has forced firms to hike wages but immigrant workers have taken up some of the slack, helping companies to meet strong demand with only a marginal reduction in profits.
“The sector should enjoy another good year, with commercial property booming and individuals increasingly renovating or converting instead of moving house.
“House prices are buoyant but it is remarkable, and very encouraging for the sector, that construction firms’ order books are so strong after such a good run in the last few years.”
