Beard Construction comments on CIPS PMI data

05 October 2023

Fraser Johns, finance director at Beard Construction said: “After three months of growth and many positive signs for the sector, today’s news is another reminder that we’re not out of the woods just yet. The continued downturn in housebuilding amid low demand and higher borrowing costs is once again having a significant impact on the wider industry picture.

“Away from housebuilding and on the ground at Beard, we have seen positive signs of demand, along with a number of starts on site in September - particularly in education and for local infrastructure projects across our four regions. Frameworks continue to provide valuable opportunities and fill our future pipeline, highlighting a contrast in appetite and demand across different sectors.

“There’s no question many will be encouraged by the continued easing of inflation and the news of a hold on interest rates. However, we cannot escape the fact that there is still much volatility in the sector and in the wider economy. After months of propping up the industry, commercial construction has shown it’s not immune from macro pressures. For those contractors facing real pressure, now is the opportunity to take advantage of the breathing space offered by a drop in activity to get all their ducks in a row and evaluate where their efforts are best placed – particularly those with a focus on residential development.”