©2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Construction – the ‘sick man’ is recovering?... James Hastings

2 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Depends how you look at it…

3 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. …thus this year in terms of output still poor…

4 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. …with a long way to go to peak again 1 st half output down by 2.5% compared to same period of 2012Output likely to be flat over the year as a whole……assuming about £1bn more output in the 2 nd half than the firstOn this basis output will be 14% below its 2007 peak in 2013…and at its lowest level since 2001 in real termsNot exactly a picture of health

5 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. However, other indicators are more upbeat

6 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Construction PMI very strong

7 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. House transactions up…

8 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. …and so are starts

9 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Growth driven largely by private sectors

10 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. But performance remains patchy Social housing providers have been adept at accessing private finance Housing market recovery should soon start to be reflected in new house building output Solid infrastructure growth around transport and energy projectsThe public non-residential sector the main drag on construction outputIndustrial does reasonably well, but is coming back from a low baseCommercial activity doesn’t turn upwards until 2 nd half of 2014

11 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Next 5 years better than last five, except for London?...

12 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public....definitely yes Wales and South West boosted by new nuclear buildInfrastructure and industrial strong in the East of EnglandTransport, offices, and green agenda drives Scottish constructionCrossrail work peaks in London in 2014/15Northern Ireland and North East coming back from very low baseMajor projects thin on the ground in the Midlands

13 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public. Conclusion Construction is finally in recovery mode Public finances will continue to be a drag Concerns about overheating housing market But growth likely to be only steady Regions driven by major projects

14 ©2012 Experian Information Solutions, Inc. All rights reserved. Experian Public.