Infrastructure ‘stalls’ despite Government plans

New statistics reveal that the infrastructure sector recorded low levels of activity between April and June this year in spite of the Coalition’s attempts to increase growth.

A Royal Institution of Chartered Surveyors (RICS) report found the number of construction projects in quarter two remained at a standstill, with a net balance of -4% recorded. Researchers said the industry has seen “little movement” overall in nearly three years despite Government plans to help the sector through privately funded projects. The findings showed that 4% more of those questioned saw reductions in workloads instead of increases, indicating that the construction industry as a whole is experiencing growth issues.

Experts added that the public sector continues to feel the greatest pressure. It is predicted that the net profit margins balance will tumble further from -18% to -26% in the coming months, which highlights the pressure on margins as input expenses increase faster than output costs.

“Infrastructure workloads failed to pick up despite the Government’s attempts to boost the sector through private investment. More action to back up the rhetoric is urgently needed if the construction industry is to play a meaningful role in driving the economy forward over the next few years,” said Simon Rubinsohn, RICS chief economist.

IBB has one of the largest real estate groups in West London and the South East, with expertise in commercial development, residential development, real estate finance, real estate investment and management, construction and real estate dispute resolution. Contact a member of the team by visiting the relevant service page, call us on 08456 381381 or email enquiries@ibblaw.co.uk.