Beard comments on latest CIPS PMI data
06 December 2023
Following the release of the latest CIPS PMI construction data, which shows a house building slump weigh heavy on construction output, here is a comment from Beard Construction.
Fraser Johns, finance director at Beard, said: “Despite some resilience in the commercial sector, the headlines will continue to focus on house building remaining the weakest performing sector, which continues to have a heavy impact on construction output as a whole. Higher borrowing costs remain a real barrier for this sector, and along with tighter access to credit, is also having an impact in other areas of construction. While it seems the Bank of England has now paused its rate rising agenda, the news of rates staying “higher for longer” and general uncertainty in the UK economy could signal further hesitance from both potential homeowners and clients next year too.
“Although resilient, we mustn’t overlook the drop in activity in the commercial sector – the third month in a row. However, in our experience, the south west and its growing economies continue to offer plenty of construction opportunities, while demand further afield has encouraged us to open a new office on the south coast in 2024. On the ground at Beard, we continue to respond to opportunities through local and national frameworks which are key drivers in pipeline activity.
“As we head into the new year, it’s highly likely that both tendering and cost plans will continue to face considerable pressure. As a result, we are actively encouraging clients to explore a more measured approach to procurement. Instead of going straight to tender, clients can engage with a contractor earlier and before planning, working collaboratively to save time and costs in the process.”
