The building industry is entering a “nosedive” in the final quarter of 2011, the country’s largest builders’ group has warned.
The Federation of Master Builders (FMB) State of Trade Survey, which focuses on construction SMEs, shows the sector has now seen workloads fall for the 15th consecutive quarter.
“It is hard to think of another period in living memory when the building industry has been so badly hit by an economic crisis,” said FMB director-general Richard Diment.
He urged chancellor George Osborne to understand that a recovery in the construction sector was essential if it was to deliver economic growth in the wider economy.
About 44% of FMB members have reported falling enquiry levels, while those expecting to increase employment is now only 16%.
“The rising cost of materials is also a serious concern to builders with 88% expecting them to increase over the next six months.”
Mr Diment said a reduced VAT rate was needed to help boost consumer demand and, without it, it was difficult to see any real upturn in building work.
For full details on FMB’s State of Trade Survey visit www.fmb.org.uk/news/press-releases.
