The construction sector continues to be a mix of bright spots and dark shadows. It is positive to see new infrastructure projects beginning, and forecasts of growth for 2021 following the UK’s successful vaccination programme. Yet it is concerning to see that the rest of the sector continues to lag behind its pre-pandemic level, and confirmation of the near 10% fall in GDP last year.
Ahead of next month’s Budget and clarification of what support will continue for companies, it is worrisome to see profit warnings amongst construction firms at a high.
Another ongoing concern is the continued pressure on materials driven by constraints throughout the entire supply chain. As economies experience some recovery this year and consumption increases, this pressure will need to be monitored closely.