Beard Construction comments on CIPS PMI data

05 January 2024

Following the release of the latest CIPS PMI construction data, which shows construction sector downturn ease in December, here is a comment from Beard Construction.

Fraser Johns, finance director at Beard, said: “In what has become a consistent theme for the industry, weak performance in the house building sector continues to hold back construction output and weigh heavily on overall new work.

“A key driver has been elevated borrowing costs and general uncertainty in the economy, which is also being felt in the commercial space – contributing to a modest decline in the sector. It may be the case that clients don’t quite have the confidence just yet to commit to large-scale construction projects. Saying that, our view on the ground in the south remains positive with high demand – particularly from frameworks, and growing interest on the south coast as we prepare to open our latest regional office.

“There’s no question that resilience is key at the moment and the ability for firms to hold their nerve. While 2024 will undoubtedly present its fair share of challenges, we are beginning to see some positive indicators for the year ahead and expectations of falling interest rates. However, this does depend on the appetite of the Bank of England and the economy avoiding any substantial shocks. There’s an element of controlling what we can control right now and nurturing those close relationships with clients as confidence begins to return.”