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UK construction sector suffers its biggest slump on record


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UK construction sector suffers its biggest slump on record

https://www.theguardian.com/business/2020/may/06/uk-construction-sector-suffers-its-biggest-slump-on-record-coronavirus-lockdown

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The monthly IHS Markit/CIPS snapshot showed the main construction activity index fell from 39.3 in March to 8.2 in April, the lowest since the data was first collected in April 1997, and lower than the previous record low of 27.8 in February 2009 at the height of the financial crisis.

More than four-fifths of firms surveyed (86%) reported a drop in business activity since March, while only 3% reported an increase. Residential and commercial construction sectors were the hardest hit, but civil engineering also declined at a record pace.

The closure of builders’ merchants and manufacturing stoppages led to widespread shortages of materials. About three-quarters of construction companies reported longer delivery times from suppliers, and also highlighted a lack of safety equipment such as face masks and goggles for their workers.

New business volumes in the sector fell at the fastest rate on record. Staffing levels also fell sharply in April, with companies furloughing staff until work on site can resume with physical distancing measures in place...

 

Edited by Saving For a Space Ship
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18 minutes ago, Saving For a Space Ship said:

UK construction sector suffers its biggest slump on record

https://www.theguardian.com/business/2020/may/06/uk-construction-sector-suffers-its-biggest-slump-on-record-coronavirus-lockdown

highlighted a lack of safety equipment such as face masks and goggles

I wondered when that would kick in. 

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https://www.khl.com/construction-europe/report-reveals-record-slump-in-uk-construction/143853.article

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The Construction Products Association’s economics director, Noble Francis, also responded to the survey, saying, “House builders will also be very cautious about starting new developments given uncertain demand.

He added, “Given 86% of construction employment is in SMEs, the biggest impact will be sub-contractors and specialists suffering from record PMI declines in construction activity.

SME’s will also suffer from main contractors pushing out payment terms.

Even where activity is occurring, social distancing measures to ensure safety on site mean productivity has fallen 30-50% (depending on the development).

This means construction activity takes longer and costs more, and so adversely impacts the margins of previously signed contracts.”

 

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  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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