The UK construction industry has had a slow start to the new year, it has been reported that January 2017 has provided the slowest growth for the construction industry since the Brexit vote of June 2016.
We would ask that everyone reading this blog does not get disheartened by this fact. Despite the slow growth, the construction industry is still not in decline. This is bolstered by construction buyers remaining confident regarding the coming year. With plans of large projects to start in 2017 for the construction industry, this lack of growth is not a sign of construction decline.
The Construction Purchasing Manger’s Index has registered the construction industry at 52.2 in January, this has decreased from Decembers 54.2 rating. The measure of 50 on this scale is seen as no growth in the industry, and anything below that is considered as a decline. From these numbers, it is clear that the construction industry is on the rise but just not at the same pace.
The latest surveys taken have recorded strong hiring activity throughout the industry with employment numbers growing at the fastest rate for eight months. Sub-contractor usage also rose at its most rapid pace since December 2015.
In the same survey there are reoccurring issues that has caused concern, it is an issue that has been mentioned in previous Fairport blogs before. This is the rising prices for imported materials, the costs for importing materials is at an eight-year high. The concerns of passing all of these costs increases onto the customer is causing worry with small to medium sized construction firms.
With all of these issues and potential concerns that can cause difficulties for the construction industry, it has been encouraged that construction firms do not panic with the slow start of 2017. Experts are confident that growth within the industry will increase during the coming year.
Do you work for a small construction firm? Have you noticed a decrease in work over the last month? Let Fairport know what your opinion.
