Public sector cuts limit contract awards growth
21 November 2012 | By Noble Francis
Marginally more contracts were awarded in October than September – up 1% to 112.
Yet, contract awards remain relatively subdued – and the long lead time in some sectors means it could be a while, well into 2013, before we see output following suit and falling away.
Looking across the sectors, it’s a mixed picture, with the indices for public housing and public health falling in October – by 12% and 19%, respectively – because of public sector cuts. However, this was offset in October by contract awards in some private construction sectors.
Private housing contracts were 5% lower than in September, but still considerably higher than a year ago owing to work by major housebuilders. Commercial and industrial awards also rose considerably, yet were lower than a year ago and remain at historic lows so it is unlikely that we will see substantial growth soon.