Rolling live coverage of business, economics and financial markets after US central bank signals support for “some time”
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JP Morgan’s boss yesterday wrote that the US economy was approaching a possible “Goldilocks moment”. The same might well be true for UK construction.
Government spending on infrastructure, continued support for house buyers and consumers with money in their pocket appear to be creating auspicious conditions for builders.
Confidence is high among contractors. Little wonder, with infrastructure work boosting order books and enabling firms to plan ahead.
The full effects of the pandemic will likely not hit until later in the year when government support measures are withdrawn, but those in the industry feel well-placed to weather the storm.
The spring budget was a boon for both house buyers, who stand to benefit from the extension and phased ending of the stamp duty holiday, and house builders, who will hope that the government’s guaranteed support for 95% mortgages until the end of 2022 will drive demand.
The government’s infrastructure spending, such as the £27bn earmarked for roadbuilding, is also impressive and will create much needed stimulus for the industry. Collectively these measures will underpin performance in the sector for the months ahead.
There was “robust growth” across UK construction for residential, commercial and civil engineering projects, IHS Markit said.
It was in housebuilding that demand was the hottest – although it was only the fastest output expansion since last July for a housing market that is perennially short of stock.