Construction Sector Less Than Optimistic About Next Quarter
The Construction sector reported increased activity in June, but optimism of future prospects is grim. Construction accounts for around 6 per cent of economic output.
With first time home owners finding it increasingly more difficult to obtain a mortgage and the business sector tightening spending to survive in the harsh economy construction will start to see declines. Home sales have been slow as well. The Market / Chartered Institute of Purchasing and Supply construction PMI fell slightly from May’s value of 58.5 to 58.4 in June. May was actually the highest since September 2007. A lot of the loss is expected to come from the Budget’s public spending cuts and the planned increase in value added tax.