Construction buyers report resi slow down

Grant Prior 10 years ago
Share

A slowdown in residential construction offset increases in commercial and civil engineering work last month.

Latest figures from construction buyers show output unchanged in March compared to February.

But the figures show that residential work grew at its slowest pace for more than three years as other sectors surged.

The latest Markit/CIPS UK Construction PMI was 54.2 in March – unchanged on the previous month.

Tim Moore, author of the Markit/CIPS Construction PMI said : “March’s survey confirms that the UK construction sector is experiencing its weakest growth phase since the summer of 2013.

“Residential building has seen the greatest loss of momentum through the first quarter of 2016, which is a surprising reversal of fortunes given strong market fundament als and its clear outperformance over the past three years.

“Construction firms were reliant on a rebound in commercial building and resurgent civil engineering growth to offset the slowdown in housing activity.

“Civil engineering delivered its strongest performance for just over a year, suggesting that a healthy pipeline of infrastructure projects continues to boost construction output.

“However, heightened uncertainty about the business outlook appears to have weighed on overall construction demand so far in 2016, with survey respondents citing cautious client spending patterns and a reduced willingness to commit to new projects.

“As a result, volumes of new work disappointed in March as order book growth slipped for the third month in a row and reached its weakest since the pre-election blip last year.”

Mike Chappell, Global Corporates managing director for construction at Lloyds Bank Commercial Banking, said: “The mood continues to feel upbeat in construction, even if this survey suggests growth in the sector remains weak.

“In recent weeks a number of large commercial contractors have reported generally positive full-year results, helped both by an improving economy and an ever-more disciplined sector.

“A relentless focus on margins over revenue-chasing and strengthening order books are major contributing factors to this current positivity.”

Latest news

Green light for new £1.3bn neighbourhood in Salford

Ten resi towers to be built alongside 15 retail units
7 hours ago

Buyers report fastest activity decline in five years

Construction hopes for better New Year
10 hours ago

Ten high-rise schemes in limbo after building control firm folds

BSR pledges to reallocate cases and keep Gateway 2 clear-up on track.
22 hours ago

Vistry sees demand start to return for new social housing

New build demand from housing associations rises as Government support starts to kick-in
14 hours ago

Travis Perkins suppliers stunned as payment times increase

Builder's merchant giant could now take nearly three months to pay bills
15 hours ago

Costain natural resources boss heads to Mitie

Sam White joins Mitie to lead 16,000-strong Technical Services arm
15 hours ago

Willmott Dixon gets green light for Kirkby school rebuild

Contractor to start phased construction schedule at Nottinghamshire site
14 hours ago

£60m homes plan for Sheffield city centre scrubland

Capital&Centric pushes ahead with 192-home Fitzwilliam project
15 hours ago

Sizewell C financial close unlocks full-scale construction

13-bank consortium backs £5.5bn debt finance to launch full build phase in Suffolk
2 days ago

SDM Fabrications files administration notice

East Anglian steelwork contractor lodges court notice
2 days ago

Winners of £1.6bn social housing decarbonisation deal

Procure Plus awards huge retrofit and renewables framework
2 days ago

Stepnell hires Vinci development chief for Midlands push

Graham Lambert joins as regional director to drive growth
2 days ago

First data centre plans at Blackpool’s Silicon Sands site

Development aims to turn Fylde Coast into hub for digital innovation
2 days ago

Race starts for £1.5bn LHC building framework

Lower barriers and regional focus aim to draw SMEs in for PB4 deal
2 days ago

Social housing workers suffer at hands of vibrating tools

Nottingham City Homes prosecuted after builders exposed to risks
2 days ago

Building control giant Assent ceases trading

Shockwaves to hit Building Safety Regulator approval process
3 days ago

McLaren Living signs deal for £250m Reading regen

Minster Quarter to deliver 600 homes and new civic square
3 days ago

London ready-mix sales dive 32% amid housing slump

Building Safety Regulator bottlenecks blamed for steepest regional fall in the country
3 days ago

£200m plan lodged to transform Huyton town centre

Genr8 Kajima advances council HQ, hotel and 72 flats scheme
3 days ago

Luxury London developer acquires £180m Stanmore site

North west London site bought from Notting Hill Genesis
3 days ago

McAleer & Rushe wins £30m Tottenham student living job

287-room student room Printworks scheme to be built near Spurs Stadium
3 days ago

MoD rolls out £9bn plan to fix forces housing

£600k-a-day windfall from Annington buy-back reinvested in new and improved housing.
4 days ago

Statom lands frame deal on Kier Barlinnie prison job

Specialist wins major package on £684m Glasgow super prison
4 days ago

Balfour set to start £200m final stretch of Lincoln ring road

Hope for for early 2026 construction start on North Hykeham Relief Road
4 days ago

DfE greenlights £270m of school and college builds

Kier, Tilbury Douglas and B+K among winners
4 days ago

Fit-out contractor saves local joinery specialist

The Yorkshire Maintenance Co (Hull) Ltd acquires Cottingham Joinery
4 days ago

Danny Sullivan Group strengthens leadership team

New legal and finance chiefs join labour supply specilaist
4 days ago

Right-to-work reform targets construction subbies

Consultation on new laws to extend right to work checks on self-employed workers.
1 week ago

Sellafield awards £4.6bn hazard reduction mega-framework

New deal brings together AtkinsRéalis, Altrad, Amentum, and Westinghouse
7 days ago

Overbury wins £13m BBC Digbeth fit-out deal

Fit-out firm to deliver new Birmingham broadcast hub inside revamped Tea Factory
7 days ago