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Uk Construction New Orders Suffer Biggest Fall Since 1980

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http://www.guardian.co.uk/business/2011/sep/02/uk-construction-new-orders-fall

The chancellor, George Osborne, is expected to come under renewed pressure from opposition politicians and business leaders to stimulate the economy after official figures revealed the sharpest fall in new orders for the construction industry since 1980.

The Office for National Statistics found that new orders were 16.3% lower in the second quarter on the previous three months and 23.2% lower than in the same period last year.

Analysts said they had been expecting the figures to show a slowdown across the construction sector – but were shocked by the sheer scale of the slump.

Cuts to government school building along with other infrastructure projects were partly to blame, according to experts, though private sector housebuilding remains muted and the building of retail outlets and shopping centres has almost ground to a halt.

Still at least these private companies aren't dependent on the govt to generate a profit....

Luckily none of this appears to have really affected GDP.

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Why not spend the next round of QE on infrastructure and mass social housing. Got to be better than giving it to banks to ramp up commodity prices right.

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Why not spend the next round of QE on infrastructure and mass social housing. Got to be better than giving it to banks to ramp up commodity prices right.

Quite. Even hating Keynsianism as I do, if you're going to splurge money on something in a recession, do it right!

The Hoover dam is still with us, productive as ever, and a great success. Why can't we splurge some funnymoney on a Severn tidal power thingy or something. Or build a massive efficient prison. Or build houses.

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Quite. Even hating Keynsianism as I do, if you're going to splurge money on something in a recession, do it right!

The Hoover dam is still with us, productive as ever, and a great success. Why can't we splurge some funnymoney on a Severn tidal power thingy or something. Or build a massive efficient prison. Or build houses.

So you don't like balanced budgets either then? :P

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We're splurging it all on the London Olympics.

And that will be a drag on the economy after it is built.

+1

going to be fascinating to see the impact when the contracts are all complete.

What then?

And on the radio this morning, fear that the costs for supporting Libya (i.e. bombing) are going to come out of the armed forces budgets, so even more cuts for them.

Re construction: Not sure I care about the new build companies. Many are corporate monstrosities building horrible houses that will last 20 years. They pay little towards infrastructure improvements, but massively impact upon it, for example small roads are flooded by estates popping up. They take all the huge profits in the good times, living with the bad times is part of the balance.

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SERCO and A4E can rescue us, they are the private sector, public funded but private sector.

We can grow our way of this, just change the numbers a bit. Jobless Rob can be do an apprenticeship in putting together a 1000 piece jigsaw, back to work bonus for A4E, bob's your uncle.

There is nothing to worry about!

By the way, does anybody know where is best place to pawn my clothes?

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About the only sector of the economy where there is natural demand for more product in spades and the government ar doding their best to restrict supply.

Collapse of what remains of the econmy will continue unabated.

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http://www.guardian.co.uk/business/2011/sep/02/uk-construction-new-orders-fall

Still at least these private companies aren't dependent on the govt to generate a profit....

Luckily none of this appears to have really affected GDP.

The UK has plenty of problems However, the ONS construction figures are a bit of a joke, both output and new orders seem to be utter garbage. They do not correlate with any survey data (EU or Markit) or the results from listed construction companies or suppliers. For example Travis Perkins & Grafton, or anyone else you care to look up in the sector.

The figures are being manipulated either through the incompetence of the ONS or possibly deliberate sabotage.

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We're splurging it all on the London Olympics.

And that will be a drag on the economy after it is built.

Not entirely, Stratford house prices will be going to the moon, innit :D

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Quite. Even hating Keynsianism as I do, if you're going to splurge money on something in a recession, do it right!

The Hoover dam is still with us, productive as ever, and a great success. Why can't we splurge some funnymoney on a Severn tidal power thingy or something. Or build a massive efficient prison. Or build houses.

No that's the old model. Spend a wodge of money to develop more:

-Pound shops

-Tanning salons

-Coffee shops

-Pawn brokers

-Betting shops (at least 9 are needed on every high street)

-Mobile phone shops

-Estate agents

-Nail salons

That's the future right there. Then we can build a new world in the clouds where we can all wear bodysuits like in Logan's Run (but not fat people obviously 'cos that would be quite unpleasant to look at). Down in the bowels of the earth minions can manufacture things, while we look down disdainfully from our cloud of 'service industry utopia'.

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Government policy encourages less house building. The less they build the more they can charge.

With "innovative" schemes such as our council tax funding FTB deposits builders can charge more and so don't have to build as many houses to maintain profits.

What should happen is that builders should be licensed and under the terms set a target of houses they must build. If they don't reach the target they are fined. Make them supply more and sell them cheaper. Same profit but lower margins on higher turnover.

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Quite. Even hating Keynsianism as I do, if you're going to splurge money on something in a recession, do it right!

The Hoover dam is still with us, productive as ever, and a great success. Why can't we splurge some funnymoney on a Severn tidal power thingy or something. Or build a massive efficient prison. Or build houses.

Oh don't be silly. Those bank bonuses don't pay themselves you know and the River Severn is no where near London!

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About the only sector of the economy where there is natural demand for more product in spades and the government are doing their best to restrict supply.

Absolutely. And why? I don't remember affordable, rented council housing ever competing with or compromising privately-owned housing in the past. The property porn set will always look elsewhere entirely. Meanwhile, there are always going to be low-income earners who need some sort of housing.

FFS . . . even the unenlightened employers of previous centuries gave you a tied cottage or a factory terrace near the mill.

Surely the zillions paid in housing benefit would be better spent on social housing. And at least there's revenue from council rents and eventual amortisation of costs. No council lost a penny in asset money from the sell-off, but they certainly lost a revenue stream. Hence the new desperate focus on things like parking fines. There is no return from housing benefit whatsoever.

And it isn't the just construction industry that's suffering. You don't buy a pot plant or an appliance or a black'n'decker if you don't have a home in the first place. I passed the Maldon Focus DIY that has gone bankrupt the other day. It may be wrong to find such products aspirational - a philosophical point - but I'll go along with Only Me's comment that wanting a nice home is natural, and people want such a product in spades.

In the 1920s, many progressive bolshevik thinkers thought the concept of family life and homes dead and many communal shelters were built. The idea was pushed, propagandised and propagated, but it never caught on.

So yes, it is incredibly stupid to price people out of such a natural market, along with all the ancillary markets that housing affects.

Edited by copydude

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Why not spend the next round of QE on infrastructure and mass social housing. Got to be better than giving it to banks to ramp up commodity prices right.

That would be a very good idea. Then the substantial portion of the country could benefit from a construction mini boom. But since it is too much like common sense, it would never fly. Can't do anything that improves the lot of the minions can we? Far better to do something unnecessary that creates large profits for a few instead.

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FFS . . . even the unenlightened employers of previous centuries gave you a tied cottage or a factory terrace near the mill.

Surely the zillions paid in housing benefit would be better spent on social housing. And at least there's revenue from council rents and eventual amortisation of costs. No council lost a penny in asset money from the sell-off, but they certainly lost a revenue stream. Hence the new desperate focus on things like parking fines. There is no return from housing benefit whatsoever.

+1

Again, a good idea that is rooted in common sense. It'll never fly!

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I don't get it, everywhere I go around the southwest there are new housing estates being built. The town I live in is expanding at an alarming rate and so are many other villages and towns I visit. My job is construction related and I have no shortage of work at the moment.

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  • 343 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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