Atul Kariya, head of real estate and construction at MHA, comments on today’s S&P construction PMI data:

“The latest construction PMI figures underline the difficult reality the industry continues to face. After an extended period of operating in uniquely difficult circumstances, many businesses still remain vulnerable to external shocks. Current global instability and ongoing conflicts will put further pressure on already challenging supply chain issues, exacerbate energy and materials cost inflation and generally weaken overall confidence.

“The Spring Statement earlier this week offered an opportunity for the Government to prioritise long-term economic growth, but expectations were limited. The industry urgently needs clear, sustained measures that stimulate economic activity, support investment and help rebuild resilience across the sector.

“With unemployment trends likely to influence housing transactions, we may see a knock-on effect on demand in the months ahead. A PMI reading that remains below the 50-mark is undoubtedly discouraging, but the hope is for gradual stabilisation as the year progresses. The sector is flat bar a couple of areas,  but with the right growth levers and a forward looking policy environment, improvement is still possible.”