If it smells like a dog

The Bureau for Economic research (BER) in their latest research into the building industry confirmed what the economists had picked up in their research into the housing market.

The results of the latest BER survey conducted in the building industry during the third quarter of 2006 show further signs of a moderation in demand conditions in the residential market.

Growth in building activity turned out well below the expectations of respondents.

As a result, the growth in the profitability of contractors slowed down sharply and they were forced to reduce the number of people in their employment. No further sharp decline in residential building activity was expected in the final quarter of the year.

On the other hand turning to the non-residential sector of the building industry demand conditions remain solid.

Current levels of work on hand experienced by non-residential contractors remain at a relatively high level. However, the survey revealed early signs that building activity could possibly moderate somewhat in this sector going forward.

For example, expectations of architects regarding new work have been scaled down notably and contractors, although remaining upbeat, indicated that they expect the demand for building to become less robust.
 
The business confidence of civil engineering contractors weakened somewhat during the past quarter, possibly as a result of their inability to find adequate skilled workers to cope with the higher workloads experienced at present.

With business conditions currently very favourable, competition in tendering is weak and profit margins are growing at a healthy rate in the sector.

Editors thoughts:
If it smells like a dog, and looks like a dog and barks like a dog it must be a dog.