The latest international cost commentary report from Rider Levett Bucknall concludes that European construction markets remain depressed with some stabilisation evident in the UK although at significantly recessed levels.
The RLB report says that London construction continues to decline with the exception of infrastructure activity.
Downward pressure on UK construction costs remains, particularly in Manchester, Birmingham and London, reflecting the ongoing competitiveness of tender markets.
Construction activity in other European markets continues to fall particularly in Madrid, Stockholm and Berlin, with no sign of improvement in general economic outcomes.
However, in line with other global construction markets, civil and social infrastructure construction is improving again responding to Government policy settings in this area.
RLB said construction costs generally continue to fall as competition for reduced work opportunities escalates.
RLB Q2 Tender price forecasts:
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