Construction still feeling gloomy
Sentiment in the construction sector began to decline again in the second quarter of the year, as fears over the scale of public spending cuts and uncertainty about the economy hit the industry, says the latest RICS Construction Market Survey.
Despite some encouraging signs at the beginning of the year, the latest data shows seven per cent more surveyors reporting a fall than a rise in total construction workloads.
Simon Rubinsohn, RICS chief economist says: “This suggests it is too early to conclude that the construction industry is on the road to recovery despite the strong contribution the sector appeared to make to the latest GDP data. Significantly, spending cuts are already having an adverse effect on sentiment.”
A continued lack of clarity from the Government on existing projects is adding to the uncertainty, he said.