HOUSE BUILDING IN A ‘DITCH’ WITH OTHER CONSTRUCTION SEGMENTS, SAYS CIPS
UK house building is among the construction segments to have fallen into a “ditch” in October, the Chartered Institute of Procurement and Supply (CIPS) has said.
The body’s monthly market index highlighted house building as among the worst-performing segments, alongside civil engineering and commercial construction.
House building contracted to a three-year low and commercial construction fell for the tenth month in a row, while civil engineering performed worst of all, it said.
The overall index hit 44.2 in October, up from 43.3 in September but still below the neutral 50 reading. Readings below 50 signal negative growth.
Companies had noted “subdued client demand due to political uncertainty”, CIPS said.
“To say these figures are disappointing is a big understatement. Given that the next political hurdle is December’s general election, all eyes will be on the new administration and clear direction, because at the moment there is little insight into what could possibly pull the sector out of its ditch,” said CIPS group director Duncan Brock.
Across the construction industry, new orders dropped for the seventh month in a row and staffing levels have declined every month since April.
Last week, Barratt Developments began redundancy consultation with staff at one of its London divisions, according to a Bloomberg report.
The UK’s second-largest house builder by market value is reportedly considering up to 20 job losses in the capital.
The monthly construction industry snapshot was supplied by IHS Markit/CIPS UK Construction Purchasing Managers’ Index.
CONSTRUCTION GROWTH SLOWS AS COSTS “GO THROUGH THE ROOF”
The pace of construction growth slowed in August as buyers reported near record rises in input cost inflation. The bellwether IHS Markit/CIPS UK Construction PMI Total Activ ...
SUBCONTRACTORS HIT OUT AT HMRC OVER SLOW VAT REPAYMENTS
Specialist contractors have hit out at HMRC over the time it takes to reclaim VAT payments following a controversial change in the tax regime earlier this year. The “domestic reverse charge&rd ...
LABOUR COSTS ‘BREAK RECORDS’ AS VACANCIES SOAR
Recruiters have reported “record-breaking” increases in labour costs as new data shows vacancies hitting fresh highs. Between May and July, there were 38,000 vacancies in the construction ...
TIMBER SHORTAGE DUE TO 'UNPRECEDENTED' POST-LOCKDOWN DEMAND
The price of timber has risen sharply with builders struggling to get supplies, as post-lockdown construction and DIY projects create huge demand. The Timber Trade Federation (TTF) said supplier ...
UK CONSTRUCTION FACES ‘PERFECT STORM’ AS SUPPLY SHORTAGES LOOM
UK construction is facing a “perfect storm” of growing skills and materials shortages as demand for building reaches record levels driven by home improvements, the housing market and new i ...
DEMAND FOR CONSTRUCTION WORKERS CLOSE TO 20 YEAR HIGH
The staff shortage in construction is continuing to bite, with 33,000 job vacancies for the period of April to June according to the latest figures from the Office for National Statistics. It is the s ...