Key Statistics: 5 May 2015

Construction

• Figures released by the Insolvency Service suggest strong improvements in the financial fortunes of construction firms last year. The number of firms entering administration in 2014 fell by 29%, the number of Creditors Voluntary liquidations was down 13% and compulsory liquidations fell by 20%. Data for Q1 2015 shows further falls in administrations, which were down 27% compared to the same period last year. The number of bankruptcies of those self-employed in construction also fell, by 18%.
• Mace has released unchanged tender price forecasts for the next three years. Excluding London, prices are forecast to rise by 4.5% this year, before easing to 4.0% in 2016 and 2017. Prices in London are forecast to rise by 5.5% this year, before easing to 4.0% next year and 3.5% in 2017.

Economy

• UK GDP growth slowed to 0.3% in the first quarter of this year, dragged back by weak production and construction output and an easing in service sector growth. Output from services, which accounts for almost 80% of UK GDP, grew by 0.5%. This was down from an above trend rise of 0.9% in the previous quarter. Output in production was estimated to have fallen by 0.1%. The preliminary estimate of construction output was of a 1.6% decline, marking the second consecutive quarter of contraction. 
• Two headline measures of consumer confidence offered mixed views during April. The YouGov/CEBR tracker found that consumer confidence fell between March and April, with confidence now lower than the level of a year ago. By contrast GfK’s index found consumer confidence was unchanged in April, remaining equal to the highest level for 12 years.