Construction industry sentiment began to decline again in the second quarter, according to the latest RICS construction market survey.
The latest data shows 7% more surveyors reporting a fall than a rise in total construction workloads. This compares to the previous quarter, where a 5% more surveyors reported rising, rather than falling workloads.
Most sectors of the construction industry experienced a drop in workloads, although private commercial and residential levels were broadly unchanged.
Public housing and other public works were the worst affected sectors with their net balances sliding from 3 to -26 and 0 to -33 respectively.
Only London and the south-east escaped falling workloads, although work here only stabilised rather than increased.
Profit margin expectations have been badly affected, with 49% more surveyors expecting profits to fall rather than rise.
“This survey suggests that it is too early to conclude that the construction industry is on the road to recovery despite the strong contribution the sector appeared to make to the latest GDP data,” RICS said.
“Significantly, spending cuts are already having an adverse effect on sentiment and although the cost of tradesmen and overheads continues to fall, raw material prices are rising – creating a difficult operating atmosphere.”
