According to surveys conducted throughout the construction supply chain, the sector experienced a decline in activity during Q3 of 2023. Heavy side and light side manufacturers experienced sales declines, while chartered surveyors saw their workloads decrease. Small and medium-sized contractors, as well as civil engineering contractors, also saw their net workload balances weaken. The surveys revealed that forward-looking questions all pointed to a deteriorating backdrop for the next year. Concerns over demand strength, tighter financial constraints due to raised interest rates, and a decrease in new enquiries – including in sectors that had previously driven construction activity – were all noted. Additionally, construction costs continued to rise, outpacing increases in tender prices and reducing profit margins.
The CPA’s Construction Trade Survey brings together results from surveys of building contractors, specialist contractors, civil contractors and product manufacturers. It provides a pan-industry assessment of current and expected conditions.
Members can access the Trade Survey here