CIPS/PMI COMMENT: "Cautious optimism, but we are by no means out of the woods"

06 June 2023

Following the release of the latest CIPS PMI construction data, which showed total activity increasing at the fastest pace for three months, we have a comment from Beard Construction.

Fraser Johns, Beard finance director said:

“We should be cautiously optimistic about the fact that we seem to have avoided the recession and sector-wide decline that many predicted at the beginning of the year. So much so, that there are reasons to be positive about the economic outlook for some areas of construction.

“New work continues to rise at a strong pace. Some material price rises are stabilising, construction products are seeing the shortest lead times in more than a decade and pressures on labour are easing with workforce availability improving and vacancies falling.

“However, these encouraging factors are slightly clouded by inflation being stickier than hoped, which has an impact on our people and the challenges they continue to face.

“In other words, we are by no means out of the woods. Realistic tendering, laser-focused cost control, renewed emphasis on supplier and stakeholder relationships and the ability to continue to adapt to project demands will remain key as the year progresses.”