UK builders suffer ‘subdued’ start to year as spurt subsides
The foundations for Britain’s building trade looked a little shakier today after construction firms reported a “subdued” start to the year.
Builders’ post-Brexit growth spurt faded in January, the Chartered Institute for Procurment & Supply said, as its closely watched survey recorded the industy’s weakest pace of expansion since last September.
Its activity index — where a score over 50 signals growth — slipped to 52.2 from 54.2 in December as housing, civil engineering and commercial building work slowed.
Tim Moore, senior economist at survey compiler Markit, said: “UK construction firms experienced a subdued start to 2017, with all the key categories of activity losing momentum.”
Although firms remain confident and are hiring staff, new orders grew at their weakest pace since October and cost pressures in the industry are at their highest for more than eight years.
Cips chief executive David Noble added that pressure on builders caused by a shortage in the supply chain was a “dark cloud on the horizon” and could hurt growth.
“In the short term at least, the outlook is positive, as long as economic conditions remain supportive and firms are able to control their rising costs,” he said.
These figures came as the Bank of England was expected to ratchet up its growth and inflation estimates today in its latest quarterly growth forecasts.
