Construction products output hits all-time low

Manufacturing activity has fallen to an all-time low as confidence in the construction industry has plummeted, according to the Construction Products Association (CPA).

The association’s activity barometer shows a low of 26 – the lowest figure since the barometer started fifteen quarters ago and a sharp downturn from 2007’s peak of 80.

With a score of 50 representing ‘no change’, it is a gloomy picture for the industry.

CPA economics director Dr Noble Francis said light side manufacturers had now joined heavy side structural manufacturers in suffering falling demand.

“Light side manufacturers are now beset by the same problems affecting heavy side manufacturers; the lack of new work,” he said.

“Unfortunately, although light side sales have not fallen by as much as heavy side sales, light side manufacturers are just as pessimistic as their heavy side colleagues over the next quarter.”

And the bad news does not stop there, with the CPA warning that more figures due out this week are likely to show offices and retail subsectors will endure double-digit falls in output over the next year.

Francis said: “While this will be partially offset by growth in public work, output overall is still set to fall and exacerbate the problems already facing materials manufacturers.”

Simon Oldfield, a partner at Ernst & Young, which is involved in the barometer, said: “Companies in the wider construction sector are seeking to batten down the hatches and as a result the next 12 months will continue to be a challenging time for all concerned.”