Con­struc­tion still feel­ing gloomy

Yorkshire Post - Property - - PROPERTY -

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.

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