Sense publishes February quarterly construction industry inflation report
Media
01/02/2010
Sense, the cost consultancy arm of the Mace Group, has published its first quarterly construction industry inflation report of 2010. This quarterly report is a download from the Sense website and provides an insightful overview on the current state of pricing within the construction sector and of the market itself.
"Economists believe the UK officially exited its longest recession since World War II in Q4 2009, but construction still has further to fall before the impact of six quarters of negative growth and a highly constrained lending environment has delivered in full.
Commercial output plunged by a quarter in 2009 and a substantial £13bn was wiped off construction output in just 12 months. The worst of the contraction may be behind us but no discernable recovery is likely before 2012.
Output, and hence level of work, may still be falling but commodity price inflation, governed by production levels and the global market, is already beginning to resurface. As cost pressures mount, quite how contractors can reconcile falling tender prices and rising costs remains to be seen and the situation for many over the next 12 months will be precarious...
