CORONAVIRUS (COVID-19) LATEST NEWS UPDATES

blog header image

Posted : 06 Apr 2020 at 15:11:29
Category: News

Share this article

UK construction sector output plunged at the fastest rate since the financial crisis in March as coronavirus containment measures shut down sites and caused new orders to slump, survey data has shown.

The IHS Markit/Cips construction purchasing managers’ index (PMI) tumbled to 39.3 in March from 52.6 in February. This was the lowest since April 2009. A score of below 50 on the gauge, which measures the health of the sector, indicates contraction.

The UK construction sector has been one of the worst-affected areas of the economy during the coronavirus outbreak. Work cannot be done from home and social distancing on site is very difficult.

Construction firms have also criticised confusing government advice. A government body initially recommended site workers stay two meters apart. The advice was withdrawn after an uproar from the industry, although roughly half of the sites are thought to have closed.

Such closures and lower workloads led firms to lay off workers at the quickest pace since 2010 in March, data firm IHS Markit said.

The civil engineering sub-sector, which focuses on infrastructure, suffered the biggest fall in output. This was closely followed by commercial building work.

Residential construction also fell but to a smaller extent. However, residential building companies said site shutdowns meant housebuilding could be about to plunge.

UK construction sector set to worsen

“The closure of construction sites and lockdown measures will clearly have an even more severe impact on business activity in the coming months,” said Tim Moore, economics director at IHS Markit.

Duncan Brock, group director at Cips, the Chartered Institute of Procurement & Supply, noted that said: “construction companies registered their lowest levels of optimism since October 2008”.

He said things had been looking up for the sector in February. But now “any hope of a continuation of growth was mercilessly bulldozed away in March”.

“With no upturn insight, and with the fastest level of layoffs since September 2010, the sector is stuck in quicksand and sinking further,” Brock said.

“The brutality of this impact cannot be underestimated, and the sector has not hit rock bottom yet.”

Original Source - City AM

SIMILAR NEWS

blog header image
NEWS
CHANCELLOR ORDERS REVIEW OF CAPITAL GAINS TAX

The chancellor has commissioned a review of Capital Gains Tax (CGT) to examine how gains are taxed in comparison to other types of income. The office of Tax Simplification (OTS) will undertake the rev ...

blog header image
NEWS
BORIS TELLS MP'S TO SUPPORT THE GOVERNMENTS VIEW ON IR35 AMENDMENTS AND OFF-PAYROLL

So we finally find out why so many MP's did not, or did not want to get involved with trying to stop Off-Payroll Working Rules and IR35 amendments, completely ignoring the Finance Bill and report from ...

blog header image
NEWS
BRICKWORK CONTRACTOR LOOSE CASE - STATUS OF CONSTRUCTION INDUSTRY CONTRACTORS QUESTIONED BY TRIBUNAL RULING

An Employment Tribunal has thrown into question the status of construction industry contractors in a ruling finding that two contractors were in fact employees and should be afforded the protections o ...

blog header image
NEWS
CALL TO BUILD 100,000 HOMES A YEAR FOR COVID-19 HEROES

Ministers are being urged to build 100,000 homes a year to rent for key workers involved in the fight against coronavirus. The Local Government Association has called for a social house building ...

blog header image
NEWS
RACE FOR £250M SOUTH EAST NEW-BUILD HOUSING DEAL

South East Consortium is planning to invite tenders next month for a fresh line-up of firms to deliver a £250m new-build housing programme. The 37-member strong consortium consists of sever ...

blog header image
NEWS
SADIQ KHAN HIDES “APPALLINGLY SHORT” CONGESTION CHARGE CONSULTATION

Sadiq Khan is only giving Londoners until the 4 June to oppose his decision to hike up the congestion charge. Don't let the Mayor get away with sneaking his appallingly short consultation through. Tel ...