Beard Construction comments on CIPS PMI construction data

06 February 2024

Following the release of the latest CIPS PMI construction data, which shows construction sector business optimism at a two year high, we have a comment from Beard Construction.

Fraser Johns, finance director at Beard, said: “As the outlook for the economy continues to improve, businesses across the sector seem to be finding some much-needed confidence. This is not shared by all clients just yet though, with a dip in new orders – albeit only marginally. Housebuilding continues to be the biggest example of this, with demand continuing to fall amid elevated interest rates – a similar story among some clients in the commercial sector.

“There’s no question many businesses are buoyed by growing sentiment that the Bank of England will cut the base rate later this year – perhaps even multiple cuts. This will certainly help to reduce the pressure on borrowing that is hampering the ability of many clients to commit to projects. The recent uptick in inflation shows that we are not out of the woods yet, however with volatility easing there are certainly more positive than negative indicators - we do however need to encourage and nurture that same level of confidence among our clients.

“On the ground at Beard, we are optimistic for a positive year ahead, driven by growing demand from regional frameworks and across many sectors. Ahead of the launch of our new south coast office, we are continuing to build a pipeline of work across the region, highlighting demand for contractors with our experience and expertise.”