SMEs record upturn in Q3 workloads

Workload and employment among small-and medium-sized firms grew in the quarter June to September, according to the latest figures from the Federation of Master Builders (FMB).

It follows four successive periods of negative growth. Three out of 10 firms reported an increase in work, with five out of 20 taking on more personnel.

But the federation warns that the strength of improvement, while similar to that of last year, falls short of the normal seasonal upswing recorded in its surveys in the previous six years.

FMB director general, Ian Davis, said: “While it is encouraging to see growth return to the market, a lasting upswing remains uncertain. Certain parts of the market are still struggling, and the impression that sluggish conditions will continue is reinforced by findings regarding workload in the next quarter and enquiries for future work.”

The weakest area is the social housing sector, where there is little expectation of improvement. The results for public non-residential buildings are also disappointing: the survey recorded its first negative third-quarter result in this sector.

Scotland seems to be bucking regional trends by returning consistently positive results throughout the year, and also positive expectations for the future.

[Contract Journal, 15 November 2006, p 4]