Whilst in and around the City on Sunday – at a function, 15 floors up – I happened to notice the huge number of cranes dotted about the London skyline. Now like most people who live in a city, you tend to only see those things which are most familiar to you, until something catches your eye, and spurs you on to look again, but with a different focus. So I decided to try and get some perspective on this – after all, just because I noticed a large number of cranes, it didn`t necessarilly mean that they had magically appeared overnight.
So I did a little bit of research. As of mid May this year, building activity in London had trebled from its low in 2010, to reach a four year high – and by the look of things on Sunday, that activity had further gathered momentum. AND, of the building under construction, 33% of it is pre let, compared to only 1% back in 2011., so potential tenants are going ahead with plans now, rather than sitting back and waiting for things to improve/get cheaper.
I also managed to talk to a few friends who run businesses parallel to the building industry ie. making windows/doors/plastics etc. and all reported a surge in demand over, specifically, the last 6 months, with business levels now at or above pre recessionary levels.
I would sum this up by saying that economic activity in this part of the world, and in this particular sector, is booming. Not a true reflection on the UK as a whole, but cause for optimism that GDP may normalise perhaps a little faster than is currently envisaged.
Also, Carney……Crane……….make up your own mind, too similar for my liking AND, you never see them out together.