Wage Increase 4%
The rise of construction input costs continues to outstrip the economy’s headline rate of inflation. Most indicators of building costs reflect input cost increases equivalent to more than ten times the headline CPI rate of inflation.
The weaker Pound has generated higher costs for imported material from the Eurozone, with a 12% increase over the last six months.
Fuel oils recovered over the quarter, with crude oil up from all-time low of US$ 30 to US$ 50 in May, the highest level since October last year.
Wage rates in construction remain the driving force of headline rates of tender price inflation, with an average 4% increase in the sector compared with the service sector’s 2.9% and UK average rate of 2.7%.
UK unemployment rose by 21,000 to 1.7 million between December and February however, the headline rate of 5.1% remains unchanged.
This is the first rise since mid-2015, possibly reflective of uncertainty over hiring and investment moving forward, albeit the change is modest. The headline rate is down from 5.6% at the same time last year with employment at the highest recorded levels.