The Construction Products Association’s (CPA) Activity Barometer has recorded an all-time low in the outlook for the coming quarter among construction product manufacturers.
Undertaken in conjunction with Ernst & Young, the Activity Barometer reached 26, where 50 represents ‘no change’ in market activity.
The Activity Barometer provides an advance indicator of conditions and prospects across the construction products industry at the end of each quarter.
The CPA said this was the lowest result since the barometer was introduced 15 quarters ago, with lightside manufacturers now joining their heavyside counterparts in being pessimistic about future trading conditions.
“Lightside manufacturers are now beset by the same problem affecting heavyside manufacturers; the lack of new work,” said CPA economics director Dr Noble Francis.
“Unfortunately, although lightside sales have not fallen by as much as heavyside sales, lightside manufacturers are just as pessimistic as their heavyside colleagues over the next quarter.”
Simon Oldfield, a partner in Ernst & Young’s building products team, added that the “next 12 months will be a challenging time for all”, with the government’s stamp duty and energy efficiency programmes unlikely to have “any real positive impact”.
