Construction Industry is bouncing back at a slower rate
The construction industry is still making a recovery but progress began slowing down again in November, compared to during the summer. Policymakers will be concerned with the news that employment rates are still declining. In the summer months the employment sector was considered to be the solution to jobs being lost in the public sector when the funds are cut.
Sarah Ledger, economist at Markit and author of the figures asserted that, “While mild growth of the UK construction sector was reported in November, PMI data signalled that operating conditions remained challenging. New contract wins were restricted by lengthy negotiation periods and deferred spending by clients. Furthermore, jobs were cut again, indicating that constructors see little need to maintain current capacity. Expectations for business activity over the coming year did rise in the month, although confidence remained below pre-recession levels.”
The economy will be unable to rely on the construction industry to being the saviour of the recession in the UK. The boost in construction during the second and third quarters was due to special factors which are no longer influential. However, there are certain projects in Greater London which are having a positive effect on the construction industry so it’s not all doom and gloom.