Skip navigation

Gloucestershire Business News

Construction industry tries to build on shaky growth

The brakes went on construction activity in June across the UK as house-building declined to the slowest growth since February amid a slowdown in new orders which analysts are attributing (at least in some part) to uncertainty ahead of today's election result.

According to a new survey from S&P Global, many firms were seeing orders grow, but were adopting a wait-and-see approach, with the latest UK Construction Purchasing Managers' Index (PMI) falling to 52.2 in June from a rating of 54.7 in the previous month.

The figure fell below the median forecast of 53.6 in a poll of economists, but registered above the threshold of 50 which is seen as indicating growth. Key factors included a slight rise in raw materials pricing and an easing on supply chain pressure.

Andrew Harker, economics director at S&P Global Market Intelligence, said that any slowdown could partially be attributed to the industry not knowing the political pathway ahead.

He said: "While there were signs of a slowdown in the latest survey period, most notably around housing activity, firms indicated that a slowdown in new order growth was in part related to election uncertainty."

He added: "We may therefore see trends improve once the election period comes to an end."

Within the survey, activity in civil engineering and commercial construction climbed, while demand for residential building work was weaker, despite May having been the best period in the previous 19 months.

Mr Harker added that "confidence in the year ahead outlook remained strong and firms increased employment to the largest extent in ten months."

Meanwhile new data from risk analysts at Creditsafe today shows that the volume of construction administrations went up for the second consecutive month.

In total, administration moves were announced by 31 businesses in June, a rise of seven on May's total. In April 2024, just 13 said they couldn't settle their debts.

A total of 68 failures in Q2 of 2024, however, represented the lowest quarterly tally since Q3 2022, when 64 firms called time, while the 147 construction companies going into administration in the first half of 2024 signals a 16% year-on-year fall.

● In a notable county loss in March this year, Gloucestershire bespoke builders Chappell and Dix closed down with the loss of more than 60 jobs.

Related Articles

Gloucester leader

Gloucester leader "concerned" over £1.14m gap in commercial property income

He said the portfolio needs to work harder to pull its finances out of the woods


EXCLUSIVE: "Persimmon road closure is killing our business"

Customers and suppliers sent round in circles, says company boss.

BREAKING: global software error in USA hits Gloucestershire business Image

BREAKING: global software error in USA hits Gloucestershire business

Windows wipeout triggers chaos amid "massive" failure.

Annual quiz raises £2,000 for two charities Image

Annual quiz raises £2,000 for two charities

Quiz buffs helped raise a fabulous £2,000 for two Gloucestershire charities at an annual event last night (Thursday).

Copyright 2024 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.