“Construction activity is showing signs of a slowdown following the post referendum recovery. Since September, construction activity has remained relatively strong despite the strong headwinds following the referendum result. However, we must remain cautious and remember that we haven’t even started the process of ‘brexiting’ yet and therefore there are still many unknowns that are likely to impact confidence and put a halt to new projects. This slowdown in growth may be a reflection of building uncertainty in the lead up to triggering Article 50. In addition, the falling pound is continuing to put pressure on the industry, driving up costs for construction firms which heavily rely on cheap imports.
“The good news is that construction companies continue to remain positive about future growth opportunities. Indeed, we believe that once some certainty returns to the market, construction activity will be boosted even further. With the Government’s recent commitment to building new homes, the release of funding for new starter homes, reforms to the CPO process and Permissions in Principle under review, the outlook has the potential to significantly improve if these reforms are actioned and visible.