Confidence levels among construction industry executives have risen in the last quarter of 2016, according to a new survey.
The Construction Confidence Survey carried out by Timetric’s Construction Intelligence Center (CIC) showed that confidence levels improved slightly in Q3 2016, but had a sharper upturn in Q4 2016.
The Construction Confidence Index (CCI) has, as a result, reached 63.2 points in the same quarter. The CCI score remains positive, above 50 points, showing that industry executives are optimistic about growth prospects in the coming six months — albeit not yet returning to the heights recorded in 2014.
Amongst the leading indicators analysed in the survey, both sales and headcount are expected to increase in the first half of 2017 — 48% of the respondents anticipate an increase in staff headcount, while 67% expect a rise in sales in the next six months.
Raw materials and energy prices are also expected to upturn, with 82% and 73% of the respondents predicting it.
Joe Sawyer, economist at Timetric's CIC, said: “Although the most recent quarter exhibited a healthy upturn in confidence among respondents, there are a number of prevailing issues causing some anxiety.
“In Europe, for example, there are lingering concerns surrounding the Brexit vote and what it will mean for both the UK economy and those remaining in the EU. Investor confidence has been impacted, and while the initial panic has subsided it remains to be seen what will transpire once the formal process to leave the EU is triggered."
Timetric’s Construction Confidence Survey report details the results of quarterly surveys of the opinions and expectations of respondents drawn from Timetric’s panel of construction industry executives.
Current Confidence Index. Note: Index>50 implies responents are optimsitic about growth prospects; index <50 implies respondents are pessimistic about growth prospects; index =50 implies respondents are neither optimisitc or pessimistic.