A recent decrease in the UK’s housing sector has apparently resulted in a loss of growth for the UK construction industry.
This is even despite recent rises in employment and civil engineering engineering projects. To begin with, a strong pipeline of work, alongside a rise in infrastructure spending, resulted in growth for the industry. However, the stalling of house building has reduced this.
Apparently, squeezed client budgets have also impacted the growth of new business expansion too. In response to this, job creation ended up being reported at a three month low.
Despite this though, an increase in employment was reported in March. This led to construction companies being optimistically upbeat about the future growth within the industry.
Senior economist at IHS Markit stated: “UK construction firms experienced a growth slowdown in March, with the loss of momentum centred on housebuilding.”
“A weaker trend for residential work has been reported throughout 2017 so far, which provides an indication that the cooling UK housing market has started to act as a drag on the construction sector.”
Purchasing history within the industry has also been low. This was alongside a lack of new orders and rising costs too. The director of customer relationships at the Chartered Institute of Procurement & Supply stated: “where the housing sector acted as the main engine of growth over the last four years, this month it was slower and stuttering.”
“This downbeat effect took a small bite out of any strong rises in employment levels, as the increase in staff hiring was at a three month low.”
“But as the sector showed strong optimism for future business, concerns over the skilled labour ability are likely to persist in common months.”
“Now the trigger has been pulled to propel the UK out of the EU, the construction sector must keep an attentive eye on how the UK Government’s negotiations will play out.”
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