Expectations across the construction sector have regained the ground lost after the EU vote last year, according to the latest Royal Institution of Chartered Surveyors (RICS) Construction Market Survey.
The Q4 2016 survey found that following a noticeable dip around the time of the EU referendum, expectations for output growth in the year to come have strengthened for the second consecutive report.
A total of 57% of respondents now expect workloads to increase over the next year (following +49% and +23% in Q3 and Q2 respectively).
Alongside this, expectations for employment improved for the second report running, with 41% more respondents anticipating a rise in construction sector employment over the coming year. Both employment and workload expectations have now recovered to their pre-referendum levels.
During the fourth quarter of 2016, output increased in most sub-sectors except public non-housing. Following the pattern of the previous three quarters, the strongest quarterly rise in workloads was reported in the private housing sector. 27% more respondents cited an increase in private housing workloads (rather than a decrease). A rise in workloads was also reported in the private commercial and infrastructure sectors.
Simon Rubinsohn, RICS chief economist, commenting on the latest RICS survey data, said: “The latest results suggest that the construction sector has shrugged off concerns about the effect of Brexit with key workload indicators remaining firm around the country. Indeed, feedback regarding the outlook over the next 12 months is now rosier than it was in the autumn with more building anticipated as 2017 unfolds.
“That said, there remains some unease about access to skilled labour in the emerging new world and financial constraints still remain a major challenge for many businesses.”
Elsewhere, the latest Markit/CPS survey showed that construction buyers remained confident for the upcoming year – despite the construction sector suffering its weakest growth in January since post-Brexit recovery began – mainly due to new project starts and a resilient economic backdrop
The Markit/CPS survey also recorded strong hiring activity at the start of 2017 with employment numbers growing at the fastest rate for eight months. Subcontractor usage also rose at the steepest pace since December 2015.
