The construction industry faces a further decline in output in the second half of 2010 and the forward picture for product manufacturers is uncertain, according to the latest Construction Trade Survey, published yesterday.
The quarter survey, jointly published by the Construction Products Association (CPA) and industry associations, reveals that all sectors of the industry are reporting poor sales, order books and enquiries. With public sector cuts looming, the outlook for the industry over the coming months is bleak, says the CPA.
Both light and heavyside manufacturers see a mixed picture, with 61% of heavyside manufacturers anticipating no change or a fall in sales in the second half of the year.
Building contractors’ workloads fell again during the second quarter of 2010 and output has now been falling for nine quarters, with 20% of building contractors stating that workloads fell compared to a year ago. After falling 27% in 2009, workloads continued to fall in the commercial sector with nearly 30% of building contractors reporting less work.
National Federation of Builders chief executive Julia Evans said the building industry’s rush to finalise schools projects before spending was cut provided impressive headline growth figures, however, the underlying picture as positive. “Flat mortgage lending, lower levels of lending to construction companies and a planning system in transition put any tentative signs of growth at risk,” she said.
