After two consecutive quarters of clear decline, members of the Civil Engineering Contractors Association (CECA) are now equally split between those whose workload is declining and those for whom it is increasing.
Less good news is that members’ order books show a second consecutive decline for the quarter. There were 5% more firms reporting declining orders than increasing orders.
CECA director of external affairs Alasdair Reisner said: “This survey shows a welcome improvement in output, and despite tough trading conditions, a record response rate from CECA members.
“Positive signs in members’ workloads show the industry is moving in the right direction. These figures must continue to increase if contractors are to deliver growth in the economy through the multiplying effects of infrastructure provision. For this reason, we are very concerned that the rise in output is not matched by positive figures for future orders.
“CECA members are facing challenging trading conditions. The squeeze on contractors’ margins continues, as costs continue to increase while tender prices fall.
“It is thus vital that the government acts to release work in both the public and private sector, if the infrastructure sector is to act as an engine for growth in the economy.”
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