UK Out of Recession & Market Conditions

As you will have heard in the headlines yesterday the UK is officially now out of recession. Overall, the UK economy grew by 1.0 per cent in the last quarter, on the back on an Olympic boost. The Olympic effect included ticket sales, which were allocated to the quarter and are valued at about 0.2 per cent of GDP, as well as potentially increased employment, transport and creative services output.

 

The largest single boost came from the service sector, which increased by 1.3 per cent after a decrease of 0.1 per cent between Q1 and Q2.Production industries also grew, increasing by 1.1 per cent after a modest decrease in the previous set of figures.

The Civil Engineering Contractors Association welcomed the figures, but warned that they masked an underlying fragility in construction. Director of external affairs Alasdair Reisner said: “The whole of the UK has been waiting for the country to emerge from the double-dip recession. As such, today’s news is welcome as it indicates a return to much-needed growth.”

The table below shows quarterly construction growth over the past 12 month and year on year fluctuations from 2007 – 2011

Quarterly construction growth:

2011Q3 2011Q4 2012Q1 2012Q2 2012Q3
-0.5 0.2 5.9 -3.0 -2.5

Year-on-year construction growth

2007 2008 2009 2010 2011
         
2.1 -2.7 -13.5 7.9 2.6

 

Despite what the 2012 Q2 & Q3 figures above indicate Intersect have noted that throughout September and October we have had visible increases in activity with our clients, compared to July & August which are historically the quietest recruitment wise.

We are pleased to see the Infrastructure sector benefiting greatly from further major contract awards from Crossrail and continued investment on frameworks across the Capital’s overstretched Rail Network.

Whilst the market is clearly still unstable and overall employers confidence still a far cry from how it was prior to 2007 there are promising signs with official UK unemployment figures falling and talk from both political parties recognizing the important part that the construction sector can play in delivering long term economic recovery and growth.

During the course of 2012 we are pleased to see the number of vacancies rise significantly both for freelance and permanent positions. Within our specialist divisions there are also less immediately available candidates in the job market. We all hope that 2013 brings further investment to major infrastructure schemes and that the private sector also sees banks lending again giving it a much needed boost.

Intersect are currently recruiting on behalf the UK’s leading Civil Engineering Contractors and Consultancies. We have fantastic career opportunities available for Quantity Surveyors, Cost Managers, Commercial Managers and Project Managers.  To apply for any of our roles please visit our website www.intersectglobal.co.uk