The rate of growth for the small and medium-sized construction sector slowed from April to June this year, according to the latest Federation of Master Builders (FMB) State of Trade Survey for Q2 2017.
A total of 349 construction companies responded to the survey, compiled by Experian. The report noted that the sector had been growing for more than four years, but had slowed compared to the first three months of the year, mainly due to the surprise election in June.
Almost one in two construction SMEs predict rising workloads in the coming three months, with just 9% predicting a decrease in activity. Meanwhile, 83% of builders believe that materials prices will rise in the next six months.
Recruitment continues to be an issue for many firms, with 60% of construction SMEs struggling to hire bricklayers, 57% struggling to hire carpenters and joiners, and 47% struggling to hire plumbers. Almost two-thirds (62%) of construction SMEs also expect salaries and wages to increase in the next six months.
Brian Berry, chief executive of the FMB, said: “The construction SME sector is particularly vulnerable to any dips in consumer confidence that might come from periods of political uncertainty. It may be that a number of homeowners decided to delay any big spending decisions on new extensions or loft conversions while the election campaign was underway – this would account for the slowdown in growth seen in the second quarter of 2017.”
He added: “Looking ahead, almost two-thirds of construction firms expect wages and salaries to increase over the next six months and this is in contrast to stagnant wages elsewhere in the economy.”
