Surveyors blame Brexit for slowing growth
July 20, 2017 – The latest construction survey form the Royal Institution of Chartered Surveyors indicates slowing workloads, with Brexit being blamed for delaying investment.
The results of the Q2 2017 RICS Construction & Infrastructure Market Survey point to a deceleration in the pace of output growth. A net balance of +21% reported an increase in total workloads, down from +27% recorded in the previous quarter.
Although expectations for the next 12 months remain generally positive, there is less confidence in profit margins.
While growth moderated in all sectors, the private commercial and industrial segments saw the sharpest slowdown.
Economic uncertainty has led to a less optimistic outlook for the sector over the year ahead. Although 44% more contributors expect activity to rise rather than fall in the year ahead, which sounds good, this number is down from 53% in the previous quarter.
Anecdotal evidence from respondents around the country suggests that uncertainty regarding Brexit is weighing on investment decisions, alongside the political turmoil generated from last month’s general election.
“Brexit is making clients nervous and this is expected to impact future workload in commercial and residential sectors,” said John Busby of Mace Cost Consultancy.
“Brexit uncertainty has negatively affected decisions to commission new projects,” said Richard Petterson of Hother Associates in London.
“The vote to leave the EU will have very serious implications in this part of the world,” said Andrew Webster of Calvert & Webster in Rochdale.
“Brexit has been a damaging setback,” said Keith Annis of Redrow Homes in Bristol.