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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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
