Big jobs to fuel building surge
Rising interest rates are not yet cooling the building sector, now predicted to continue growing rapidly in the year ahead.
Monday, November 1st 2004, 6:45AM
by The Landlord
But growth is predicted to ease in 2006.The latest forecast from quantity surveyors Rider Hunt predicts an 18 per cent increase in the value of non-residential building work put in place in the year to March 2005.
The forecast comes just as Statistics Department figures showed a 42 per cent increase in non-residential building work in September compared to September last year.
Rider Hunt said some of the heat is forecast to dissipate the following year when growth should slow to just 5 per cent, as a result of softer household consumption growth, interest rate rises, a reduction in disposable income and a downturn in house-building and net migration.
The Rider Hunt survey, prepared by the Institute of Economic Research, found that construction industry growth was on a par with that of the mid-1990s construction boom.
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