Beard Construction comments on CIPS PMI construction data
06 September 2023
Following the release of the latest CIPS PMI construction data, which shows construction output rise slightly, but new orders fall at a fastest pace since May 2020, we have a comment from Beard Construction.
Fraser Johns, finance director at Beard Construction said: “In spite of persistent challenges for housebuilding, the construction sector as a whole continues to show real resilience with a further increase in output. This has predominantly been driven by both commercial building and infrastructure work, which certainly aligns with our own activity, project wins and future pipeline at Beard.
“While the sector will be encouraged by news of a robust improvement in supplier delivery times and a stabilisation of costs, a decline in total new order volumes will certainly cause some concern. Although inflationary pressures have begun to ease, interest rates and borrowing costs still remain high, which will undoubtedly have an impact on some clients and their appetite and ability to commit to larger projects.
“As a result, we should expect areas such as commercial building and infrastructure new work to continue to lead the recovery effort, especially as frameworks continue to provide valuable projects and fill pipelines across the country. Nonetheless, we must remain responsible with our tendering and cost plans, all while maintaining a constant dialogue with clients to nurture confidence.”
