The Oil Drilling Rig Industry is characterized with a few typical work specific to this industry only. The work begins with the search for new oil basins or construction of wells. During this time the services of drilling contractors and se…
BMI View: Q312 data for the UK construction industry shows a deteriorating picture in year-on-year
terms. Consequently, we have further downgraded our estimate for growth to -7.7% for the year. The
data, combined with anecdotal evidence from industry participants, has also prompted us to revise down
our 2013 outlook, and we are now forecasting a 0.7% decline for the year.
Major developments in the sector:
Despite the first Q312 GDP estimate showing that the UK has emerged from its double dip recession, the
picture was less optimistic for the construction sector. In quarter-on-quarter (q-o-q) terms the recession
which took hold of the industry over 2012 appeared to be easing, with industry output (gross value added)
down 2.5% q-o-q, compared to a 3% fall q-o-q in Q212. However, in year-on-year (y-o-y) terms a stark
divergence in trend was patent, with the industry contracting 10.8% compared to Q311, a continuation of
a steadily accelerating contraction. In the first nine months of 2012, the industry has contracted by an
average of 8.2% y-o-y, prompting us to further revise down our estimate for the year to -7.7%.