Richard Threlfall, KPMG’s UK head of infrastructure, building and construction comments on the latest Markit/CIPS Construction Purchasing Managers’ Index (PMI) data:
“These figures clearly show that the construction industry is caught between the jaws of private and public sector spending cuts.
“Six months ago the mood in the industry was fairly optimistic but with new orders starting to dry up, the industry sentiment is turning gloomy and the construction industry could end up in the doldrums for a while.
“Confidence across the sector is waning and pessimism is rife. Underlying economic concerns are affecting growth but the government has recognised this and has put certain plans into action to kick start growth through proposed local transport and infrastructure investment.
“But the cold reality is that these plans will take months to feed into the order books and even years into the UK economy, suffice it to say that we are in it for the long haul and the construction industry should prepare itself for a slow recovery.”
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