THE rate of decline in construction workloads for Yorkshire firms slowed slightly during the third quarter of the year, says a survey.
Figures from the Royal Institution of Chartered Surveyors said the trend mirrored national figures, which showed workloads continuing to fall in most construction sectors, but at a slower pace.
However, the decline in workloads increased for one sector of the industry in Yorkshire – the non-housing public sector where the net balance of surveyors reporting falling rather than rising workloads fell to minus 16 from a figure of plus 7 last quarter.
The biggest improvement came in private sector housing, where the net balance of surveyors reporting a rise rather than a fall in workloads went from minus 32 in the second quarter to plus 4 in the third quarter.
Public sector housing rose to a net balance of nil from minus 6 – probably due to the government bringing forward funding for housing improvement projects.
The pace of workloads in the commercial property sector rose to minus 7 from minus 29 with the industrial sector seeing a similar improvement.
Surveyors are a little more positive about the outlook for over the next 12 months – with 9% more respondents expecting output to rise than fall – the first positive reading since the first quarter of 2008.
The proportion of surveyors reporting skill shortages for trades people fell to 2%, the lowest reading since the question was first asked in 1998.
RICS chief economist Simon Rubinsohn said: “With development finance currently still in short supply it is hardly surprising that workloads in the construction industry remain under pressure.
“The good news is that the picture does not appear to be getting very much worse and there is even a little bit more optimism about the prospects.
“However the continuing squeeze on profit margins in the sector is a concern alongside the likely scaling back in government projects over the coming years.
“Sadly, there is little evidence as yet that residential home starts are picking up which is a particular worry given that a shortage of stock is contributing to the recent rebound in house prices.”
