Umbrella company contractors working in the construction sector will be pleased to learn that April data pointed to a marginal expansion within the industry.
House building was by far the strongest performing area of construction work last month. Latest data revealed a solid expansion of residential work, with the rate of growth reaching its highest since December 2018 – survey respondents reported resilient demand conditions and a strong flow of new buyers.
Commercial work, however, was the weakest area, which continued the trend seen during the first quarter of 2019. A number of firms linked lower commercial construction to Brexit-related uncertainty and delays with client spending decisions.
Tim Moore, Associate Director at IHS Markit, which compiles the survey, said, “A return to growth would normally be considered a positive month for the UK construction sector, but the weakness outside of house building gives more than a little pause for thought. Commercial activity and civil engineering both remained on a downward path in April as political uncertainty led to delays with spending decisions.