Glimmer of hope for 2024 despite continued decline in construction activity

The S&P Global/CIPS UK Construction PMI data for December 2023 has once again shown a fall in UK construction output.

However, with the latest figures indicating that the rate of decline is easing, there is renewed positivity that 2024 may see some improvement in conditions, says the Federation of Master Builders (FMB).

Brian Berry, Chief Executive of the FMB commented: “December’s Construction Output data once again shows a continued decline in house building rates, with commercial construction rates also down.

“There are, however, positive signs that the rate at which activity within the industry is declining is starting to slow, giving hope that 2024 may be a year when we finally start to see improvement.

“If the Government is serious about substantially boosting the UK’s house building rates and the wider construction industry, it must look at this as an opportunity to make real progress.

“In recent months the Government has taken some modest positive steps - providing tax cuts which will benefit small businesses and introducing new proposals for how the planning process can be expedited.”

He said the survey shows promising signs that the measures will have a positive impact, but the Government must not take this as ‘job done’.

“House building rates are still continuing to decline, and a comprehensive action plan is necessary if the UK is to deliver on the increased confidence of construction companies that 2024 will bring a rise in business activity,” he added.