Construction Sector Uncertainty

Construction is an important part of the UK economy and often serves as an economic barometer.

Although the second half of 2018 was tough for the UK construction sector, recent data has shown signs of improvement.

Although the UK Construction Output was expected at -0.3% for January 2019, it was reported at 1.8%. This is a vast improvement from -2.4% in the December 2018.

UK Construction Orders has improved slightly; reported at -10.5% in Q4 2018 from -31.4% in Q3 2018. This means that whilst output has exceeded expectations, the pipeline of work is struggling to keep up.

In Fife, Tayside and Angus, there are some significant developments underway such as St Andrews West, the recently approved Fife Housing Partnership’s Strategic Housing Investment Plan (SHIP) for 2019-2022 and the continued development of the Dundee Waterfront. This indicates that locally the news is more positive than for the wider UK.

What is clear is that the construction sector will continue to face challenges. Running multiple jobs can be a nightmare when you have to manage the materials, keep an eye on the paperwork and track labour costs, whilst making sure the job is always in profit.  Our EQ Property & Construction specialists could help you manage this by assisting with the implementation of project costing systems.

If you would like further information please email our EQ Property & Construction team at info@eqaccountants.co.uk or contact one of our offices.