INCREASING numbers of construction projects are getting underway as faith in the economic recovery strengthens, the Construction Products Association (CPA) said in a report out today.
Half of heavy-side firms reported growth of above five per cent in the third quarter, a healthy leading indicator as the firms’ products are often used in the early stages of construction projects.
And 60 per cent of light side firms – whose products are typically used to finish off projects – reported a rise in sales both on the quarter and on the year.
Exports contributed strongly to the growth, with 27 per cent of light and 25 per cent of heavy side firms reporting rising sales overseas.
“Looking ahead, product manufacturers are increasingly optimistic about fourth quarter sales growth and most are expecting higher sales over the next 12 months,” said CPA economist Milja Keijonen.
“The wider economic outlook has steadily become more positive, which should support recovery in construction and demand for building products.”