“Todays data continues to show the UK construction industry facing significant challenges – the increasing cost of materials and staff pressures is having an impact on the sector’s confidence, which is compounded with continued uncertainty over Brexit. It is essential that policymakers address these issues as a priority in order for the sector get back to the more promising outlook seen at the end of 2017.
“It is encouraging to see that commercial projects have increased at their fastest rate in February and shows that some businesses are pushing ahead with planned works in these uncertain economic times. This is a promising sign of the country’s resilience and is important for the growth of the UK economy.
“However, with the Government targeting the delivery of 300,000 new homes annually the drop-off that has been seen in residential work is a concern, especially following the raft of announcements and fresh funding included within the Autumn Budget. To bolster the confidence of the sector and help replace completed projects with new work the government needs to be investing in infrastructure projects, big and small, that connect communities and deliver vital public buildings.”
- Marginal rise in total business activity, led by commercial work
- New work declines for second month running
- Strong input cost inflation persists in February