We hope that the forthcoming Budget will have something to really boost the construction sector, especially since the disappointing news in the latest UK Markit/CIPS Purchasing Managers’ Index® (PMI®) where it showed another decline in commercial and civil engineering activity.
As new work falls for the ninth consecutive month the index has registered at 46.8, down from 48.7.
Commenting on the report, David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said:
"There is barely a crumb of comfort in this month’s figures for the construction industry to ease the continued decline in performance. The dramatic fall in civil engineering activity is particularly worrying, having been the one bright spot in the second half of 2012. Whilst the housing sector has registered mild growth for the first time in nine months, it remains weak compared with its long run average. To add insult to injury, commercial activity declined at a worrying pace.
"Future prospects look dismal too with an accelerated reduction in new orders and although there was a marginal rise in employment, it is difficult to see how this will be sustained.
"Overall, these figures are disappointing to say the least and with little in sight to improve the sector’s fortunes, all eyes will be on the Chancellor to do something to prevent further decline in the sector as we approach the Budget later in the month."
We are waiting for some real action to build the foundations of a recovery. Mr George Osborne: Your country needs you.
Pinnacle Consulting is a specialist in Construction Sales Recruitment