Despite a slight rise to 48.8, the Construction PMI indicates ongoing struggles within the sector, remaining below the critical 50.0 threshold. Persistently high inflation and last year's tax increases are hindering business investments, notably in commercial and civil engineering. However, housebuilding shows growth for the first time since September 2024. Concerns arise from construction's exclusion from the Industrial Strategy's priority sectors, signaling a gap between policy intention and execution. The government's commitment of £165 billion to construction and housing aims to renew confidence, though addressing the skills gap promptly is crucial for project delivery amid economic uncertainties.
Persistently high inflation and the impact of the tax increases from last year's Budget continue to weigh heavily on balance sheets and are preventing businesses from investing, particularly in the commercial and civil engineering sectors.
The omission of construction from the Industrial Strategy's eight priority sectors has also raised concern across the built environment, suggesting a misalignment between policy ambition and practical implementation.
Housebuilding was the bright spot in this month's PMI as it has grown for the first time since September 2024, despite overall construction activity struggling.
For these projects to be delivered at the pace required, the industry's skills gap needs to be addressed with some urgency, especially as inflation remains high.
Collection
[
|
...
]