The state of trade survey for the Construction Products Association (CPA) revealed firms are showing increasing signs of optimism and for the first time in five years product manufacturers reported increases in capital investment across all areas of their business.
The second quarter was the fifth consecutive period of rising sales with 100% of manufacturers reporting growth. Although lack of demand remains a key concern for lightside manufacturers, data from heavyside firms suggests capacity pressures may be emerging.
CPA senior economist Kallum Pickering said there were clear signs firms were investing and increasing headcount. "These results confirm the construction products industry is firmly on the path of recovery."
The CPA summer forecast also found evidence of better times. Output was expected to grow across the construction sector by 4.7% this year, 4.8% in 2015, and up to 22% over the next five years. Its value will rise 10% over the next two years to £11bn.
